1. Brock Florist Company buys a new delivery truck for $29,000. It is classified as a light-duty truck.

a. Calculate the depreciation schedule using a five-year life, straight-line depreciation, and the half-year convention for the first and last years.

b. Calculate the depreciation schedule using a five-year life and MACRS depreciation.

c. Compare the depreciation schedules from parts (a) and (b) before and after taxes using a 30% tax rate. What do you notice about the difference between these two methods?

2. Brock Florist Company sold its delivery truck (see previous problem) after three years of service. If MACRS was used for the depreciation schedule, what is the after-tax cash flow from the sale of the truck (continue to use a 30% tax rate) if

a. The sales price was $15,000?

b. The sales price was $10,000?

c. The sales price was $5,000?