Depreciation On March 20, 2003, Norton Systems acquired two new assets. Asset A was research equipment costing $17,000 and having a 3 year recovery period. Asset B was duplicating equipment having an installed cost of $45,000 and a 5 year recovery period. Using the MACRS depreciation percentages in Table 3.2 on page 100, prepare a depreciation schedule for each of these assets.
|
TABLE 3.2 |
||||
|
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes |
||||
|
|
Percentage by recovery yeara |
|||
|
Recovery year |
3 years |
5 years |
7 years |
10 years |
|
1 |
33% |
20% |
14% |
10% |
|
2 |
45 |
32 |
25 |
18 |
|
3 |
15 |
19 |
18 |
14 |
|
4 |
7 |
12 |
12 |
12 |
|
5 |
|
12 |
9 |
9 |
|
6 |
|
5 |
9 |
8 |
|
7 |
|
|
9 |
7 |
|
8 |
|
|
4 |
6 |
|
9 |
|
|
|
6 |
|
10 |
|
|
|
6 |
|
11 |
___ |
___ |
___ |
4 |
|
Totals |
100% |
100% |
100% |
100% |