You purchased a used combine for $320,000.  The combine is a…

You purchased a used combine for $320,000.  The combine is a 5-year tax class asset.  Using information in the table below, calculate the amount of tax depreciation for the 4th year of ownership Year Tax Depreciation Rate Tax Basis (end of year) 1 20.00% $256,000 2 32.00% $153,600 3 19.20% $92,160 4 11.52% $55,296 5 11.52% $18,432 6 5.76% $0.00  

When I bought a depreciable asset it had a useful life of 7…

When I bought a depreciable asset it had a useful life of 7 years and a salvage value of $90,000. I had been depreciating the asset over the past 4 years using the declining balance method and a depreciation rate of 20%. After owning the depreciable asset for 4 years it’s book value is $100,000. Calculate the amount of annual depreciation for the next year (year 5) of ownership. (5 points) Calculate the book value of the depreciable asset at the end of year 5. (5 points)