Shapter $10$

Question $5,$ P$10-8($similar

to$)$

HW Score: $58\mathrm{.}33\%,4\mathrm{.}67$ of $8$

Part $1$ of $11$

points

se Br

Points: $0$ of $1$

Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $$95,000.$ Calculate the depreciation schedule using a seven$-$year life $($for the property class category of a single$-$purpose agricultural and horticultural structure from Table $10\mathrm{.}3)$ for both straight$-$line depreciation and MACRS, $.$ Use the half$-$year convention for both methods. Compare the depreciation schedules before and after taxes using a $40\%$tax rate. What do you notice about the difference between these two methods?

Using a seven$-$year life, straight$-$line depreciation, and the half$-$year convention for the first and last years, what is the annual depreciation of the trimmer?

Data table

MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table

$\backslash$table$[[$Year$,3-$Year,$5-$Year,$7-$Year,$10-$Year$],[1,33\mathrm{.}33\%,20\mathrm{.}00\%,14\mathrm{.}29\%,10\mathrm{.}00\%$