Using the MACRS depreciation method, what is the book value at the end of year one for a machine with a $250,000 cost basis Assume the machine is in the seven year MACRS class Use Table 13 1 MACRS Depreciation Schedule Year Class 3 years 5 years 7 years 10 years 1 41 67 25 00 17 85 12 50 2 38 89 30 00 23 47 17 50 3 14 14 18 00 16 76 14 00 4 5 30 11 37 11 97 11 20 5 11 37 8 87 8 96 6 4 26 8 87 7 17 7 8 87 6 55 8 3 34 6 55 9 6 56 10 6 55 11 2 46 Total 100 00 100 00 100 00 100 00

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Question: Using the MACRS depreciation method, what is the book value at the end of year one for a machine with a $250,000 cost basis? Assume

Using the MACRS depreciation method, what is the book value at the end of year one for a machine with a $250,000 cost basis? Assume the machine is in the seven-year MACRS class.

Use

Table 13.1 MACRS Depreciation Schedule

Year		Class
Year	3 years	5 years	7 years	10 years
1	41.67%	25.00%	17.85%	12.50%
2	38.89%	30.00%	23.47%	17.50%
3	14.14%	18.00%	16.76%	14.00%
4	5.30%	11.37%	11.97%	11.20%
5		11.37%	8.87%	8.96%
6		4.26%	8.87%	7.17%
7			8.87%	6.55%
8			3.34%	6.55%
9				6.56%
10				6.55%
11				2.46%
Total	100.00%	100.00%	100.00%	100.00%

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