The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4. Year MACRS% Depreciation Ending book value 1 14.29 % .1429 × $ 1,700,000 = $ 242,930 $ 1,457,070 2 24.49 .2449 × 1,700,000 = 416,330 $ 1,040,740 3 17.49 .1749 × 1,700,000 = 297,330 743,410 4 12.49 ? ?
The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4. Year MACRS% Depreciation Ending book value 1 14.29 % .1429 × $ 1,700,000 = $ 242,930 $ 1,457,070 2 24.49 .2449 × 1,700,000 = 416,330 $ 1,040,740 3 17.49 .1749 × 1,700,000 = 297,330 743,410 4 12.49 ? ?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 6BCRQ
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The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4.
Year | MACRS% | Ending book value | |||||||||||
1 | 14.29 | % | .1429 | × | $ | 1,700,000 | = | $ | 242,930 | $ | 1,457,070 | ||
2 | 24.49 | .2449 | × | 1,700,000 | = | 416,330 | $ | 1,040,740 | |||||
3 | 17.49 | .1749 | × | 1,700,000 | = | 297,330 | 743,410 | ||||||
4 | 12.49 | ? | ? | ||||||||||
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