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Stallone’s Sub Shop purchased a delivery van for $24,000. Suppose that MACRS allows delivery vans to be depreciated fully in 6 years according to six fixed percents: 20% the first year, 32% the second year, 19.2% the third year, 11.52% the fourth and fifth years, and 5.76% the sixth year. What is the annual depreciation for the second year?

Respuesta :

Aliwohaish12
The annual depreciation is
The cost of the van×depreciation rate

The requirement is the annual depreciation for the second year

As your question mentioned that the
The depreciation rate is 32% in the second year So
the annual depreciation for the second year is
24,000×0.32=7,680

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