A piece of newly purchased industrial equipment costs $975,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. (e.g., 32.16))
Table 10.7
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Table 10.7
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(BLANK)
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(BLANK)
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(BLANK)
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|
Property Class
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(BLANK)
|
(BLANK)
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(BLANK)
|
|
Year
|
Three-Year
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Five-Year
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Seven-Year
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|
1
|
33.33%
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20.00%
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14.29%
|
|
2
|
44.45
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32
|
24.29
|
|
3
|
14.81
|
19.20
|
17.49
|
|
4
|
7.41
|
11.52
|
12.49
|
|
5
|
(BLANK)
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11.52
|
8.93
|
|
6
|
(BLANK)
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5.76
|
8.92
|
|
7
|
(BLANK)
|
(BLANK)
|
8.93
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|
8
|
(BLANK)
|
(BLANK)
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4.46
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Please complete the following table.
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Year
|
Beg. Book Value
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Depreciation
|
Ending Book Value
|
|
1
|
$______
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$______
|
$______
|
|
2
|
$______
|
$______
|
$______
|
|
3
|
$______
|
$______
|
$______
|
|
4
|
$______
|
$______
|
$______
|
|
5
|
$______
|
$______
|
$______
|
|
6
|
$______
|
$______
|
$______
|
|
7
|
$______
|
$______
|
$______
|
|
8
|
$______
|
$______
|
$0.00
|