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1. (20 points) McKendrecs Magical Unicorns purchased a new mini-unicorn semi- truck and trailer (glitter included) on January 1, 2019 for $452,000. They expect the semi-truck and trailer to last 5 years with an S85,000 salvage value. According to MACRS, they can depreciate the semi-truck for 7 years using 150% declining balance Complete the following depreciation tables (three economic and one MACRS) Note: each highlighted box is worth 1 point for a total of 20 points possible A. Fill in the table using the straight-line method Remaining value at beginning of vear Remaining value at end of year Depreciation ear 2019 2020 2021 2022 2023 B. Fill in the table using the straight-line method if the purchase date was August 1, 2018 Remaining value at beginning of vear Remaining value at end of year Depreciation ear 2019- Aug 1 to Dec 31 2020 2021 2022 2023 2024- Jan 1 to July 31 C. Fill in the table using the 200% Declining Balance method, purchase date was Jan. 1,2018 What is the deprecation rate? Remaining value at Remaining value at end of vear Depreciation ear 2019 2020 2021 2022 2023 beginning of vear D. Calculate the MACRS depreciation schedule using 150% declining balance with a half vear convention. Table 7-2. 150% Declining Balance Method (Half-Year Convention Year 3-Year 5-Year 7-Year 20-Year 25.0% 15.00% 10.71% 3.750% 37.5 25.50 19.13 7.219 25.0 17.85 15.03 6.677 12.5 16.66 12.25 6.177 16.66 12.25 5.713 8.33 12.25 5.285 12.25 4.888 6.13 4.522 Year Remaining value at beginning of year Depreciation ing value at end of vear 2019 2020 2021 2022 2023 2024 2025 2026 ows

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