1.
A five- year asset with a depreciable base of 2,500,000 will be
depreciated using 5-years MACRS....
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Finance
1.A five- year asset with a depreciable base of 2,500,000 will bedepreciated using 5-years MACRS. Construct a table showing annualdepreciation, accumulated depreciation and asset’s book value foreach year the asset is depreciated.
2. Use your answer to question 1 to answer this quesrion. Findthe tax savings from depreciation in year 1,2 and 3. Why is theretax saving from deprecitation.
3. Assume that the asset in question 1 is sold for $500,000 inyear five. Find the net salvage value.
please use .21 tax rate if needed.
please show formula and work
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Annual Depreciation Depreciable Base of asset MACRS Depreciation Rate Asset Depreciable base 2500000 A BA2500000 C D2500000C Year 5Year MACRS Annual Accumulated End of year Depreciation Rate Depreciation Depreciation Book Value 1 20 500000 500000
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