Question

Declining balance depreciation with MACRS depreciation schedule

An asset for a U.S.-based commercial farm corporation was purchased for $50,000 and has a 7-year useful life and an expected resale value of 20% of the first cost. Anabbreviated recovery period of 5 years is allowed by MACRS. (a) Prepare the MACRS annual depreciation schedule and book values. (b) Compare these results with DDBdepreciation and book value over n = 7 years that may be determined in another country. (c) Develop two Excel xy scatter charts for the comparisons above

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