Complete the following table given this information: Note: Do not round intermediate calculations. Cost of machine Residual value Useful life $ 101,800 $ 5,300 5 years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Complete the following table given this information:
Note: Do not round intermediate calculations.
Cost of machine
Residual value
Useful life
Actual production
Estimated units machine will produce: 100,000
Use MACRS table.
Method
$ 101,800
$ 5,300
Straight line
Units of production
Declining balance
MACRS (5-year class)
5 years
Year 1
73,000
Year 2
22,000
Depreciation Expense
Year 1
Year 2
Transcribed Image Text:Complete the following table given this information: Note: Do not round intermediate calculations. Cost of machine Residual value Useful life Actual production Estimated units machine will produce: 100,000 Use MACRS table. Method $ 101,800 $ 5,300 Straight line Units of production Declining balance MACRS (5-year class) 5 years Year 1 73,000 Year 2 22,000 Depreciation Expense Year 1 Year 2
TABLE 17.5
Annual recovery for MACRS
Recovery 3-year class
year
(200% D.B.)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
33.00
45.00
15.00*
7.00
5-year class
(200% D.B.)
20.00
32.00
19.20
11.52*
11.52
5.76
*Identifies when switch is made to straight line.
7-year class
(200% D.B.)
14.28
24.49
17.49
12.49
8.93*
8.93
8.93
4.46
10-year class
(200% D.B.)
10.00
18.00
14.40
11.52
9.22
7.37
6.55*
6.55
6.55
6.55
3.29
15-year class
(150% D.B.)
5.00
9.50
8.55
7.69
6.93
6.23
5.90*
5.90
5.90
5.90
5.90
5.90
5.90
5.90
5.90
3.00
20-year class
(150% D.B.)
3.75
7.22
6.68
6.18
5.71
5.28
4.89
4.52
4.46*
4.46
4.46
4.46
4.46
4.46
4.46
4.46
Transcribed Image Text:TABLE 17.5 Annual recovery for MACRS Recovery 3-year class year (200% D.B.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 33.00 45.00 15.00* 7.00 5-year class (200% D.B.) 20.00 32.00 19.20 11.52* 11.52 5.76 *Identifies when switch is made to straight line. 7-year class (200% D.B.) 14.28 24.49 17.49 12.49 8.93* 8.93 8.93 4.46 10-year class (200% D.B.) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.55 6.55 3.29 15-year class (150% D.B.) 5.00 9.50 8.55 7.69 6.93 6.23 5.90* 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 3.00 20-year class (150% D.B.) 3.75 7.22 6.68 6.18 5.71 5.28 4.89 4.52 4.46* 4.46 4.46 4.46 4.46 4.46 4.46 4.46
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