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Comprehensive Guide to Depreciation Methods and Tax Analysis

Explore different depreciation methods like MACRS and GDS with tax implications. Learn to analyze after-tax cash flows effectively.

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Comprehensive Guide to Depreciation Methods and Tax Analysis

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  1. TABLE 7-1 The 200% DB Method with Switchover to the SL Method (Example 7-2)

  2. TABLE 7-2 MACRS Class Lives and Recovery Periodsa

  3. TABLE 7-2 (continued) MACRS Class Lives and Recovery Periodsa

  4. TABLE 7-3 GDS Recovery Rates (rk) for the Six Personal Property Classes

  5. TABLE 7-3 GDS (continued) Recovery Rates (rk) for the Six Personal Property Classes

  6. Figure 7-1 Flow Diagram for Computing Depreciation Deductions under MACRS

  7. TABLE 7-4 MACRS (GDS) Property Classes and Primary Methods for Calculating Depreciation Deductions

  8. TABLE 7-4 (continued) MACRS (GDS) Property Classes and Primary Methods for Calculating Depreciation Deductions

  9. Figure 7-2 GDS Recovery Rate for 5-year Recovery Period Spreadsheet

  10. Figure 7-3 BV Comparisons for Selected Methods of Depreciation in Example 7-7 (Note: The bus is assumed to be sold in year six for the MACRS-GDS method.)

  11. TABLE 7-5 Corporate Federal Income Tax Rates (2006)

  12. Figure 7-4 The Federal Income Tax Rates for Corporations (Table 7-5) with Incremental Income Tax for a Proposed Project (assumes, in this case, corporate taxable income without project > $18,333,333)

  13. Figure 7-5 General Format (Worksheet) for After-Tax Analysis; Determining the ATCF

  14. TABLE 7-6 ATCF Analysis of Example 7-15

  15. Figure 7-6 Spreadsheet Solution, Example 7-15

  16. TABLE 7-7 ATCF Analysis of Example 7-16 [Reworked Example 7-15 with Machinery in the 10-Year MACRS (GDS) Property Class]

  17. TABLE 7-8 After-Tax Analysis of Example 7-18

  18. TABLE 7-9 After-Tax Analysis of Purchase Alternative (Example 7-19)

  19. Figure 7-7 Summary of Example 7-19

  20. TABLE 7-10 After-Tax Analysis of Design S1, Example 7-20

  21. TABLE 7-11 After-Tax Analysis of Design S2, Example 7-20

  22. TABLE P7-39 Table for Problem 7-39

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