Hi Expert, Can you answer this question and show all work including the formula

Question

Hi Expert,

Can you answer this question and show all work including the formula that used to determine the percentage please in (excel)

MACRS-ADS depreciation is only considered in Section 9.6.1, and no tables are provided in this text. Suppose you have an injection molding machine for plastic products costing $220,000, and for whatever reason, you decide to depreciate it using MACRS-ADS. It is considered to be in a 7-year property class and yet is depreciated over 11 years if MACRS-ADS is elected. Determine the depreciation percentages to two places after the decimal (e.g., 9.62 percent) and the depreciation allowance for each year. Hint: Don’t forget the half-year convention!"

Explanation / Answer

The depreciation as per the 7% ADS method for 11 years is as follows

ADS depreciation method 11 years Year Cost Value Depreciaton % Depreication Ending Value 1 220000 5% 11000 209000 2 220000 10% 22000 187000 3 220000 10% 22000 165000 4 220000 10% 22000 143000 5 220000 10% 22000 121000 6 220000 10% 22000 99000 7 220000 10% 22000 77000 8 220000 10% 22000 55000 9 220000 10% 22000 33000 10 220000 10% 22000 11000 11 220000 5% 11000 0

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