Build an Excel spreadsheet that calculates annual cost recovery and end-ofyear adjusted basis for MACRS 3-, 5-, and 7-year assets. Begin by constructing a table that incorporates the relevant MACRS cost recovery percentages from Exhibit 8.3. Then build a table that links to the MACRS cost recovery table, allowing a user to input three data points: 

(1) Asset cost, 

(2) Year of acquisition, and 

(3) MACRS life. 

Based on these inputs, your spreadsheet should create a schedule that provides annual MACRS cost recovery and end-of-year adjusted basis for that asset. Once completed, e-mail the spreadsheet to your instructor. Your spreadsheet needs to use “IF” functions to create the MACRS cost recovery/adjusted basis schedule.

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Exhibit 8.3 Recovery Year For Property Placed in Service after December 31, 1986 3-Year 5-Year 7-Year (200% DB) (200% DB) (200% DB) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 MACRS Accelerated Depreciation for Personal Property Assuming Half-Year Convention (Percentage Rates) 33.33 44.45 14.81* 7.41 20.00 32.00 19.20 11.52* 11.52 5.76 *Switchover to straight-line depreciation. 14.29 24.49 17.49 12.49 8.93* 8.92 8.93 4.46 10-Year (200% DB) 10.00 18.00 14.40 11.52 9.22 7.37 6.55* 6.55 6.56 6.55 3.28 15-Year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 20-Year (150% DB) 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231