Problem: A gas-powered electric generator is purchased by a public utility as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $16.5 million, installed. The salvage value at the end of 30 years is expected to be 10.0% of the original cost.
a. What is the MACRS-GDS property class? ____Year
b. Determine the depreciation deduction (dt) and the unrecovered investment (Bt) for years 1, 5, and the last depreciable year of the generator.
D1 = $ __________, B1 = $ __________
D5 = $ ____________, B5 = $ __________
Dlast year = $ _________, Blast year = $ _________