A construction company purchases an excavator for $250,000. This is classified in the 5-year property class...

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A construction company purchases an excavator for $250,000. This is classified in the 5-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 2 and 5 using MACRS? Click here to access the TVM Factor Table Calculator. Depreciation allowance at the end of year 2: Book value at the end of year 2: Depreciation allowance at the end of year 5: Book value at the end of year 5: LA LA LA LA Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5. A construction company purchases an excavator for $250,000. This is classified in the 5-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 2 and 5 using MACRS? Click here to access the TVM Factor Table Calculator. Depreciation allowance at the end of year 2: Book value at the end of year 2: Depreciation allowance at the end of year 5: Book value at the end of year 5: LA LA LA LA Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is ±5.

Answer rating: 100% (QA)

To calculate the depreciation allowance and book value at the end of years 2 and 5 using MACRS we need to use the MACRS depreciation percentages for t... View the full answer