documentation. 1  the use of documentary evidence. 2  a furnishing with documents, as to substantiate a claim or the data in a book or article. 3  Computers.
1 Regular depreciation: Most business equipment is depreciable under MACRS depreciation (Modified Accelerated Cost Recovery System-pronounced MAKERS). 2  MACRS includes an accelerated method, which produces higher deductions in the early years of the property's recovery period than the MACRS straight-line method.
After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 30% and a discount rate of 12%. Calculate the depreciation tax shield for this project in year 1. $7,199.20. $8,886.00. $5,999.40. $6,554.40.