You check Table B-1 and find land improvements under asset class 00.3. You then check Table B-2 and find your activity, paper manufacturing, under asset class 26.1, Manufacture of Pulp and Paper. You use the recovery period under this asset class because it specifically includes land improvements. The land improvements…

At the end of three years the truck’s book value will be $40,000 ($70,000 minus $30,000). Depreciation is how an asset’s book value is “used up” as it helps to generate revenue. In the case of the semi-trailer, such uses could be delivering goods to customers or transporting goods between…