For the first to use calculate the

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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For the first to use calculate the depreciation for a $7,500 car. This is a non luxury car used table 17.4 and 17.5.

TABLE
17-5
Annual recovery for MACRS
3-year class
(200% D.B.)
5-year class
(200% D.B.)
7-year class
(200% D.B.)
10-year class
(200% D.B.)
15-year class
(150% D.B.)
20-year class
(150% D.B.)
Recovery
year
1
33.00
20.00
14.28
10.00
5.00
3.75
45.00
32.00
24.49
18.00
9.50
7.22
3
15.00*
19.20
17.49
14.40
8.55
6.68
4
7.00
11.52*
12.49
11.52
7.69
6.18
11.52
8.93*
9.22
6.93
5.71
6
5.76
8.93
7.37
6.23
5.28
8.93
6.55*
5.90*
4.89
8
4.46
6.55
5.90
4.52
9
6.55
5.90
4.46*
10
6.55
5.90
4.46
11
3.29
5.90
4.46
12
5.90
4.46
13
5.90
4.46
14
5.90
4.46
15
5.90
4.46
16
3.00
4.46
*Identifies when switch is made to straight line.
Transcribed Image Text:TABLE 17-5 Annual recovery for MACRS 3-year class (200% D.B.) 5-year class (200% D.B.) 7-year class (200% D.B.) 10-year class (200% D.B.) 15-year class (150% D.B.) 20-year class (150% D.B.) Recovery year 1 33.00 20.00 14.28 10.00 5.00 3.75 45.00 32.00 24.49 18.00 9.50 7.22 3 15.00* 19.20 17.49 14.40 8.55 6.68 4 7.00 11.52* 12.49 11.52 7.69 6.18 11.52 8.93* 9.22 6.93 5.71 6 5.76 8.93 7.37 6.23 5.28 8.93 6.55* 5.90* 4.89 8 4.46 6.55 5.90 4.52 9 6.55 5.90 4.46* 10 6.55 5.90 4.46 11 3.29 5.90 4.46 12 5.90 4.46 13 5.90 4.46 14 5.90 4.46 15 5.90 4.46 16 3.00 4.46 *Identifies when switch is made to straight line.
TABLE
17-4
Class recovery
perlod (life)
Asset types
Modified Accelerated Cost Recovery
System (MACRS) for assets placed in
service after December 31, 1986
3-year
Racehorses more than 2 years old or any horse other than a racehorse that is
more than 12 years old at the time placed into service; special tools of certain
industries.
5-year"
Automobiles (not luxury); taxis; light general-purpose trucks; semiconductor
manufacturing equipment; computer-based telephone central-office switching
equipment; qualified technological equipment; property used in connection
with research and experimentation.
Railroad track; single-purpose agricultural (pigpens) or horticultural structures;
fixtures; equipment; furniture.
7-year"
10-year*
New law doesn't add any specific property under this class.
15-year
Municipal wastewater treatment plants; telephone distribution plants and
comparable equipment used for two-way exchange of voice and data
communications.
20-year
Municipal sewers.
27.5-yeart
Only residential rental property.
31.5-yeart
Only nonresidential real property.
*These classes use a 200% declining-balance method switching to the straight-line method.
*These classes use a 150% declining-balance method switching to the straight-line method.
These classes use a straight-line method.
Transcribed Image Text:TABLE 17-4 Class recovery perlod (life) Asset types Modified Accelerated Cost Recovery System (MACRS) for assets placed in service after December 31, 1986 3-year Racehorses more than 2 years old or any horse other than a racehorse that is more than 12 years old at the time placed into service; special tools of certain industries. 5-year" Automobiles (not luxury); taxis; light general-purpose trucks; semiconductor manufacturing equipment; computer-based telephone central-office switching equipment; qualified technological equipment; property used in connection with research and experimentation. Railroad track; single-purpose agricultural (pigpens) or horticultural structures; fixtures; equipment; furniture. 7-year" 10-year* New law doesn't add any specific property under this class. 15-year Municipal wastewater treatment plants; telephone distribution plants and comparable equipment used for two-way exchange of voice and data communications. 20-year Municipal sewers. 27.5-yeart Only residential rental property. 31.5-yeart Only nonresidential real property. *These classes use a 200% declining-balance method switching to the straight-line method. *These classes use a 150% declining-balance method switching to the straight-line method. These classes use a straight-line method.
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