A manufacturer of aerospace products purchased three flexible assembly cells for $450,000 each. Delivery and insurance charges were $40,000, and installation of the cells cost another $54,000. a. Determine the cost basis of the three cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year three? d. If the cells are sold to another company for $100,000 each at the end of year seven, how much is the recaptured depreciation? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cost basis of the three cells is $ thousand. (Round to the nearest whole number.) b. The class life of the cells is years. (Round to the nearest whole number.) c. The MACRS depreciation in year three is $ thousand. (Round to the nearest whole number.)

A manufacturer of aerospace products purchased three flexible assembly cells for $450,000 each. Delivery and insurance charges were $40,000, and installation of the cells cost another $54,000. a. Determine the cost basis of the three cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year three? d. If the cells are sold to another company for $100,000 each at the end of year seven, how much is the recaptured depreciation? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cost basis of the three cells is $ thousand. (Round to the nearest whole number.) b. The class life of the cells is years. (Round to the nearest whole number.) c. The MACRS depreciation in year three is $ thousand. (Round to the nearest whole number.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...

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