S Depreciation Deduction Accumulated Depreciation Book Value $ 1 $ ✕ 33.33% = $
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 44P
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Question
Johnson Industries purchased a metal-working lathe for $32,000. This item will be used for business 90% of the time. Accountants elected to take a $11,000 section 179 deduction and utilize the special depreciation allowance of 50%.
Prepare a depreciation schedule (in $) using MACRS.
Round all dollar amounts to the nearest cent.
Johnson IndustriesMACRS Depreciation Schedule—Metal-working Lathe
| End of Year | Basis for Depreciation | ✕ | Recovery Percent | = | MACRS Depreciation Deduction | Book Value | |
|---|---|---|---|---|---|---|---|
| $ | |||||||
| 1 | $ | ✕ | 33.33% | = | $ | $ | $ |
| 2 | $ | ✕ | 44.45% | = | $ | $ | $ |
| 3 | $ | ✕ | 14.81% | = | $ | $ | $ |
| 4 | $ | ✕ | 7.41% | = | $ | $ | $ |
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