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3. A firm purchased and put in service a new piece to manufacture reusable rockets. The...

3. A firm purchased and put in service a new piece to manufacture reusable rockets. The cost basis for the equipment is $250,000. Tabulate annual depreciation deductions and book values for each year using GDS method. Class life = 10. GDS^b = 7. ADS = 10.

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Expert Solution

Year Cost basis Rate Depreciation for the year Opening book value Depreciation expense Closing book value
1        250,000 14.29%          35,725.00 250,000.00 35,725.00 214,275.00
2        250,000 24.49%          61,225.00 214,275.00 61,225.00 153,050.00
3        250,000 17.49%          43,725.00 153,050.00 43,725.00 109,325.00
4        250,000 12.49%          31,225.00 109,325.00 31,225.00     78,100.00
5        250,000 8.93%          22,325.00     78,100.00 22,325.00     55,775.00
6        250,000 8.92%          22,300.00     55,775.00 22,300.00     33,475.00
7        250,000 8.93%          22,325.00     33,475.00 22,325.00     11,150.00
8        250,000 4.46%          11,150.00     11,150.00 11,150.00                   -  

ekkarill92 answered 2 years ago
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