Question

a company purchased an assest for $3 million thstbwill be used in a 3 year project. the assest is in the 3 year marcs class. the depreciation percentsge each year is 33.33 percent, 44.45 percent and 14.81 percent. what is the book value of equipment at the end of the project

Answer 1

Below is the depreciation schedule for the given asset:

Year	Opening balance	Depreciation Rate	Depreciation	Closing balance
1	3000000	0.3333	999900	2000100
2	2000100	0.4445	1333500	666600
3	666600	0.1481	444300	222300

Opening balance of year 1= Cost
Opening balance = previous year's closing balance for all years after year 1
Depreciation rates are original rates as per the MACRS schedule
Depreciation = depreciation rate x cost
Closing balance = Opening balance - depreciation

So the book value or the closing balance is 222300 at the end of the project.