What is the cumulative depreciation through the end of year

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Your company has purchased a large new truck tractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Its MV at the end of five years is estimated as $40,000. Assume it will be depreciated under GDS.

a. What is the cumulative depreciation through the end of year three?

b.What is the MACRS depreciation in the 4th year?

c. What is the BV at end of year 2?

Reference no: EM13214516

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