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mario62 [17]
3 years ago
12

Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent,

19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What will be the book value of this equipment at the end of four years if he ignores bonus depreciation
Business
1 answer:
Nat2105 [25]3 years ago
6 0

Answer:

The book value of this equipment at the end of four years if he ignores bonus depreciation $26,290.

Explanation:

Cost of property = $67,600

                           Balance    Depreciation

Year 1                  67,600         13520

Year 2                 54,080         17,306

Year 3                 36,774          7,061

Year 4                  29,713          3,423

Book vaue at the end of year 4 = 29,713 - 3423 = $26,290

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