A high-precision programmable router for shaping furniture components is purchased by Henredon for $180,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances.
a. What is the MACRS-GDS property class?
b. Assume the complete allowable depreciation schedule is used.
End of Year dt Bt
c. Assume the asset is sold during the 5th year of use.
End of Year dt Bt