A piece of newly purchased industrial equipment costs $1,070,000 and is classified as seven-year property under MACRS.
Calculate the annual depreciation allowance of Year 8 for this equipment.
a. $47,722
b. $95,551
c. $143,273
d. $262,043
e. $96,235
Calculate the end-of-the-year book value of Year 7 for this equipment.
a. $47,722
b. $96,235
c. $95,551
d. $262,043
e. $143,273