90.2K

Verified Solution

Link Copied!

A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $100,000, and the expected salvage value for depreciation purposes is $8,000. The company will use the truck for eight years and will depreciate it over this period of time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five (i.e., MACRS versus SL)? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (r). i More Info 3 Using the GDS (MACRS) method the depreciation amount in year five is $ . (Round to the nearest dollar.) MACRS Class Lives and Recovery Periods Using the SL method the depreciation amount in year five is $ . (Round to the nearest dollar.) Recovery Periods GDS ADS ss Life The difference in the amount of depreciation is $ . (Round to the nearest dollar.) Asset Class 00.11 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 32.2 34.0 36.0 37.11 37.2 48.12 49.13 49.21 79.0 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation Vonnovavo ono ovvvwooooo Enter your answer in each of the answer boxes

Answer & Explanation Solved by verified expert

See Answer