Question: A company purchases new cement manufacturing assets that cost $33 million. This is classified in the 15-year property class using MACRS-GDS. What would be the depreciation allowance and book value at the end of years 1 and 3 using MACRS with 50% bonus depreciation?
Depreciation allowance at the end of year 1: $ ________ million
Book value at the end of year 1: $ ________ million
Depreciation allowance at the end of year 3: $ ________ million
Book value at the end of year 3: $ ________ million