In early 2012, Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for wine bottles.

| October 22, 2018

In early 2012,
Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for
wine bottles. The machine has a 3-year recovery period and is expected to have
a salvage value of $2,000. Develop a depreciation schedule for this asset using
the MACRS depreciation percentages in Table 4.2.
Table 4.2
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four
Property Classes
 Percentage by
recovery year(a)
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 %
These
percentages have been rounded to the nearest whole percent to simplify
calculations while retaining realism. To calculate the actual depreciation for
tax purposes, be sure to apply the actual unrounded percentages or directly
apply double-declining balance depreciation using the half-year convention.

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now