Rubber Incorporated purchased a new machine for $12,000 to shape rubber. It is estimated that the new machine will have a recovery period of 3 years with an expected salvage value of $2,500. Use the MACRS depreciation percentages presented in Table 4.2 to develop a depreciation schedule for the new machine.

Table 4.2

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Rounded Depreciation Percentages by Recovery Year Using MACRS TABLE 4.2 for First Four Property Classes Recovery year 2 3 4 6 7 8 9 10 11 Totals 3 years 33% 45 15 7 100% Percentage by recovery year" 5 years 7 years 20% 14% 32 25 19 18 12 12 12 5 100% 9 9 9 100% 10 years 10% 18 14 12 9 8 7 6 6 100%