If corporate headquarters for ups in atlanta is considering adding to its 96,000 fleet of delivery vans, what is year 5’s depreciation expense using macrs if one van costs $78,800?

Respuesta :

The depreciation is $90,7776.

Modified accelerated cost recovery system (MACRS) with an introduction to ACRS (1986,1989,2010).

This system is also known as the General Depreciation system (GDS).

Here the corporate headquarters decided to add 96,000 fleets of delivery vans, then if one can cost $78,800 the years 5s  depreciation expenses using

MACRS is $78,800 * 11.52 = $90,7776.

Depreciation is allotted so that it will fee an honest share of the depreciable quantity in every accounting length throughout the expected beneficial existence of the asset. Depreciation consists of the amortization of belongings whose useful lifestyles are predetermined.

to lower in honor or esteem frequently depreciates the importance of her work. 2a: to decrease the price or estimated price of depreciated belongings. B: to deduct from taxable income a part of the authentic value of (a business asset) over numerous years as the price of the asset decreases.

In accountancy, depreciation refers to two aspects of the same concept: first, the real lower of the fair price of an asset, which includes the lower fee of factory gadget every year as it is used.

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