Your firm is considering purchasing a piece of equipment that will fall into the MACRS 3-year depreciation schedule, which is given in the table below. The equipment will cost $28845 and you will also have to pay $2983 to install it in your factory. What is the depreciation expense for the equipment in Year 3? Round your answer to the nearest dollar.
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
| Depreciation |
33.33% |
44.45% |
14.81% |
7.41% |