Find the depreciation for the first year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 10-yearproperty and was purchased for $118,551.Click the icon to view a table of MACRS rates.The depreciation is $(Round to the nearest cent as needed.) 11/4/22, 12:40 AMYear123456789101112131415----~~1617181920213-Year33.33%44.4514.817.41Depreciation rate for recovery period7-Year14.29%24.4917.4912.498.938.928.934.465-Year20.00%32.0019.2011.5211.525.76.10-Year10.00%18.0014.4011.529.227.376.556.556.566.553.2815-Year5.00%9.508.557.706.936.235.905.905.915.905.915.90MACRS Table5.915.90 SP5.912.9520-Year3.750%7.2196.6776.1775.7135.2854.8884.5224.4624.4614.4624.4614.4624.4614.4624.4614.4624.4614.4624:4612.231

MACRS is modified accelerate depreciation in which there is more depreciation in the initial years…

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roperty and was purchased for $118,551. Click the icon to view a table of MACRS rates.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

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Question

Find the depreciation for the first year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 10-year
property and was purchased for $118,551.
Click the icon to view a table of MACRS rates.
The depreciation is $
(Round to the nearest cent as needed.)

11/4/22, 12:40 AM
Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
----~~
16
17
18
19
20
21
3-Year
33.33%
44.45
14.81
7.41
Depreciation rate for recovery period
7-Year
14.29%
24.49
17.49
12.49
8.93
8.92
8.93
4.46
5-Year
20.00%
32.00
19.20
11.52
11.52
5.76
.
10-Year
10.00%
18.00
14.40
11.52
9.22
7.37
6.55
6.55
6.56
6.55
3.28
15-Year
5.00%
9.50
8.55
7.70
6.93
6.23
5.90
5.90
5.91
5.90
5.91
5.90
MACRS Table
5.91
5.90 SP
5.91
2.95
20-Year
3.750%
7.219
6.677
6.177
5.713
5.285
4.888
4.522
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4:461
2.231

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