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Stone Age Concrete, Inc., purchased cement manufacturing equipment valued at $420,000 on March 14, 2014. The equipment is used for business 100% of the time. The firm's accountant elected to take a $100,000 section 179 deduction. You have been asked to review the depreciation figures used for this equipment.
a. What is the basis for depreciation of this equipment?
b. Please show the depreciation schedule for the first five years of operation of this equipment by using MACRS.
Stone Age Concrete, Inc. MACRS Depreciation Schedule Cement Manufacturing Equipment
End of Year
1 2 3 4 5
Original Basis (cost)
Cost Recovery Percentage
Cost Recovery (depreciation)
Accumulated Depreciation
Book Value
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