The Dow Ceramic Company purchased a glass molding machine in January 2010 for $180,000. The company has been depreciating the machine over an estimated useful life of 10 years. assuming no salvage value, by the straight-line method of depreciation. For tax purposes. the machine has been depreciated as seven-year MACRS property. At the beginning of 2013. Dow overhauled the machine at a cost of $45,000. As a result of the overhaul, Dow estimated that the useful life of the machine would extend five years beyond the original estimate.
(a) Calculate the book depreciation for the year 2016.
(b) Calculate the tax depreciation for the year 2016.