a serious question I need help with on depreciation?

Question

if a company is going to start a new project that will last four years and they spend $200,000 on equipment how do you figure out what the depreciation rate will be at the end of each of the four years? By a special
ruling, the machinery could be depreciated under the
MACRS system as 3-year property. The applicable depreciation
rates are 33%, 45%, 15%, and 7%
do these percentages mean anything I just don't understand

Answer 1

Well, if the project will last 4 years and the equipment will be in use for all 4 years with no salvage value, then for accounting purposes, you should depreciate over 4 yrs. However as to whether you shd use straight-line, double-declining or other policies depends on your co. policy in force for other fixed assets. I think the accelerated depreciation you're allowed to claim is for tax purposes. That will be adjusted when your tax professional is preparing the tax computation, but it shd not change your accounting policies.

Answer 2

watch video onthis website it helped me. good luck.