Question

McCanless Co. recently purchased an asset for $2,100,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2

Answer 1

$933,450

Step-by-step explanation:

Calculation to determine What is the amount of depreciation in Year 2

using this formula

Year 2 depreciation=Year 2 depreciation percentage* Asset purchased

Let plug in the formula

Year 2 depreciation = .4445*$2,100,000

Year 2 depreciation = $933,450

Therefore the amount of depreciation in Year 2 will be $933,450