MACRS Depreciation Method - Instructions for Schedule
MJC Revised 1/2012 Page 3
Love Thy Pets Inc.,Depreciation Schedule
MACRSFor 5 Year Asset
Cost of Asset $20,000Residual Value 5,000Useful Life 5 Years
A B C D E FEnd of year CostDepreciationRateAnnualDepreciationExpenseAccumulatedDepreciationBook ValueAt end of year1 $20,000 .2000 $4,000 $ 4,000 $16,0002 $20,000 .3200 $6,400 $10,400 $ 9,6003 $20,000 .1920 $3,840 $14,240 $ 5,7604 $20,000 .1152 $2,304 $16,544 $ 3,4565 $20,000 .1152 $2,304 $18,848 $ 1,1526 $20,000 .0576 $1,152 $20,000 $ 0
Always start with the three-line header, which in this case includes the name of the corporation,the title of the form, and the assets useful life.1.
On the first line place the title “Cost of Asset” and then the dollar value of th
On the second line place the title “Residual Value” and the dollar value of the asset at the
end of its useful life to the corporation.3.
On the third line place the title “Useful Life” and the amount of years the asset will be of
value to the corporation. You can use the first two charts to determine what the useful lifeof the asset will be for the corporation. Please take note that an asset does not cease toexist just because it is no longer useful to the corporation.4.
On the fourth line label the columns alphabetically.5.
On the fifth line use the following labels:
End of year CostDepreciationRateAnnualDepreciationExpenseAccumulatedDepreciationBook ValueAt end of year