Material handling equipment used in the manufacture of sugar is purchased and installed for $250,000. It is placed in service in the middle of the tax year and removed from service 5.5 years later.

a. What is the MACRS-GDS property class?

b. Determine the MACRS-GDS depreciation deduction during each of the tax years involved if the equipment is removed one day before the end of the tax year.

c. Determine the MACRS-GDS depreciation deduction during each of the tax years involved if the equipment is removed one day after the end of the tax year.