Question

	Complete: (Round your answers to the nearest cent.)
	Method Purchased Cost Recovery Class Recovery Year Cost Recovery MACRS July 20 $5,000 7 6 MACRS Nov 5 $11,000 20 13

Answer 1

Answer:

Equipment 1:

Cost: $5,000

Recovery Class: 7 Years

MACRS Depreciation Schedule
Years	Depreciation Rate	Depreciation	Book Value
1	14.29%	$                  715	$             4,286
2	24.49%	$               1,225	$             3,061
3	17.49%	$                  875	$             2,187
4	12.49%	$                  625	$             1,562
5	8.93%	$                  447	$             1,116
6	8.92%	$                  446	$                670
7	8.93%	$                  447	$                223
8	4.46%	$                  223	$                    -

.

Equipment 2:

Cost: $11,000

Recovery Class: 20 Years

MACRS Depreciation Schedule
Years	Depreciation Rate	Depreciation	Book Value
1	3.75%	$                  413	$          10,588
2	7.22%	$                  794	$             9,793
3	6.68%	$                  734	$             9,059
4	6.18%	$                  679	$             8,379
5	5.71%	$                  628	$             7,751
6	5.29%	$                  581	$             7,170
7	4.89%	$                  538	$             6,632
8	4.52%	$                  497	$             6,135
9	4.46%	$                  491	$             5,644
10	4.46%	$                  491	$             5,153
11	4.46%	$                  491	$             4,662
12	4.46%	$                  491	$             4,172
13	4.46%	$                  491	$             3,681
14	4.46%	$                  491	$             3,190
15	4.46%	$                  491	$             2,699
16	4.46%	$                  491	$             2,208
17	4.46%	$                  491	$             1,718
18	4.46%	$                  491	$             1,227
19	4.46%	$                  491	$                736
20	4.46%	$                  491	$                245
21	2.23%	$                  245	$                     0