Question: please help and expain throughly, i dont understand this at all Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26
Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26 ) It has a cost basis of $187,000 With additional options costing $17,000, the cost basis for depreciation purposes is $204,000. Its MV at the end of seven years is estimated as $43,000. Assume it will be depreciated under the GDS a. What is the cumulative depreciation through the end of year four? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year four is $ (Round to the nearest dollar.) Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26 ) It has a cost basis of $187,000 With additional options costing $17,000, the cost basis for depreciation purposes is $204,000. Its MV at the end of seven years is estimated as $43,000. Assume it will be depreciated under the GDS a. What is the cumulative depreciation through the end of year four? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. The cumulative depreciation through the end of year four is $ (Round to the nearest dollar.)
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