Green Acres Farms just purchased a tractor on January 1,2020.
The total purchase price (cost) was $600,000.
They expect to use the tractor for 5 years and sell for$100,000.
Assume according to MACRS, they can depreciate tractors for 3years using 150% declining balance.
Complete the following depreciationquestions.
PART A
Fill in the economic depreciation table usingthe straight-linemethod.
Year | Remaining value at beginning ofyear | Depreciation | Remaining value at end ofyear |
2020 | [Q30] | [Q31] | [Q32] |
2021 | | | |
2022 | | | [Q33] |
2023 | | [Q34] | |
2024 | | | [Q35] |
