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A machine for an assembly line costs $50,000 and has an Internal Revenue Service (IRS) class...

A machine for an assembly line costs $50,000 and has an Internal Revenue Service (IRS) class life of 10 years. What is the allowable MACRS deduction for depreciation in each year of the life of the machine?

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Answer #1
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 Year-9 Year-10 Year-11
Cost of asset $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00 $50,000.00
Depreciation rate 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.56% 6.55% 3.28%
Depreciation $ 5,000.00 $ 9,000.00 $ 7,200.00 $ 5,760.00 $ 4,610.00 $ 3,685.00 $ 3,275.00 $ 3,275.00 $ 3,280.00 $ 3,275.00 $ 1,640.00
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