A tractor for over the road hauling is purchased for 90000


A tractor for over the road hauling is purchased for $ 90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $ 4,000.
Calculate the depreciation deduction and the unrecovered investment during each year of the tractor's life using MACRS allowances.

a. What is the MACRS property class?

b. Assume the tractor is used for the full 6 years.

c. Assume the tractor is sold during the fourth year of use.

d. Assume the tractor is sold during the third by ear of use.

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Econometrics: A tractor for over the road hauling is purchased for 90000
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