11-11: A $5 Million oil drilling rig has a 5-year depreciable life and a $250,000 salvage value at the end of that time.

(a)Determine which one of the following methods provides the preferred depreciation schedule: 100% bonus depreciation or MACRS.

(b)Show the depreciation schedule for the preferred method.

(c)Search for new oil rig technologies and describe three that improve environmental impact.