2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset's life. MACRS method MACRS Depreciation Depreciation Expense Year Rates 7-Year Original Class of Property Cost 1 $59,000 14.29% 59,000 24.49% 3 59,000 17.49% 4 59,000 12.49% 59,000 8.93% 59,000 8.92% 59,000 8.93% 8 59,000 4.46% Total

2. Assuming a seven-year class of property, compute MACRS depreciation expense for each year of the asset's life. MACRS method MACRS Depreciation Depreciation Expense Year Rates 7-Year Original Class of Property Cost 1 $59,000 14.29% 59,000 24.49% 3 59,000 17.49% 4 59,000 12.49% 59,000 8.93% 59,000 8.92% 59,000 8.93% 8 59,000 4.46% Total

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 5P

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