2015 W&WR needed to replace 2 miles of track. costs $80,000. using MACRS depric, what would...

2015 W&WR needed to replace 2 miles of track. costs $80,000. using MACRS depric, what would be the depreciation for
2014
2016
2018
2020
2022

Solutions

Expert Solution

According to the Modified Accelerated Cost Recovery System (MACRS), the useful life of tracks is 7 years.

Thus, 7-year MACRS schedule is applicable:

The depreciation rates are as follows:

Ending Book Value of year = Beginning Book Value - Depreciation for the year

Depreciation for the year = Depreciation rate for the year(%)*Purchase Price

Purchase Price = $80,000

Using the above formulaes, the book value and depreciation is calculated as follows:

Please comment in case of any doubts or clarification required. Please Thumbs Up!!

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What can cause a financial panic? What would be the benefits and costs of using the...

What can cause a financial panic? What would be the benefits and costs of using the Federal Reserve as a "lender of last resort"?

What angle is needed to have the min torque? 0 90 180 270 360 2. Using...

What angle is needed to have the min torque? 0 90 180 270 360 2. Using the right-hand rule for a wire, if the current is moving to the left, the magnetic field will be Coming out of the computer screen Going into the computer screen Counterclockwise Clockwise 3. The Earth has a magnetic field because… (mark all that apply) The core is spinning It has ferromagnetic materials The charge is moving There is a lot of heat in it...

1) What are 3 social costs caused by a monopoly? 2) Illustrate and explain what would...

1) What are 3 social costs caused by a monopoly? 2) Illustrate and explain what would occur if a competing business enters into a natural monopoly. 3) Draw a kinked demand curve. Illustrate and explain why the curve is kinked.

Subjects