A piece of newly purchased industrial equipment costs $728143 and is classified as seven-year property under MACRS.
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Question:
A piece of newly purchased industrial equipment costs $728143 and is classified as seven-year property under MACRS. What is the book value at the beginning of year 8? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
Modified ACRS Depreciation Allowances (Table 10.7) | |||
Year | Three-Year | Five-Year | Seven-Year |
1 | 33.33% | 20.00% | 14.29% |
2 | 44.45 | 32.00 | 24.49 |
3 | 14.81 | 19.20 | 17.49 |
4 | 7.41 | 11.52 | 12.49 |
5 | 11.52 | 8.93 | |
6 | 5.76 | 8.92 | |
7 | 8.93 | ||
8 | 4.46 |
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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