1-51 1 Sarah Jarala recently purchased an asset that she intends to use for business purposes in her small Iceland Tourism business. The asset has MACRS class life of 5 years. Sarah purchased the asset for $85,000 and uses a salvage value for tax purposes of $15,000 (when applicable). Also, the ADR life of the asset is 8 years (a) Using MACRS depreciation, what is the boolk (b) Using MACRS depreciation, what is the boolk (c) Using MACRS depreciation, what is the sunm value after 2 years? value after 4 years? of the depreciation charges through the 5th (d) Using MACRS depreciation, what is the depre- (e) Using MACRS depreciation, what is the boolk ) Using straight-line depreciation (with no half- year? ciation for the 6th year? value after 8 years? year convention), what is the book value after the 3rd year? (g) Using straight-line depreciation (with no half- year convention), what is the book value after the 8th year