Asked Jan 19, 2020

A project requires $55,265 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 4 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? 

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.


Expert Answer

Step 1

The cost of equipment is $55,265.

According to MACRS depreciation allowances, 12.49% is the rate of depreciation in year 4.

Step 2

The depreciation expense i...

Finance homework question answer, step 2, image 1

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