2) MCO (show work) 4*5=20 a) An Income producing asset costing $120.000 is being depreciated using the 150% Declining Balance method with a salvage value of $20,000, determine the depreciation in year 2 (2nd year) assuming the equipment will be depreciated over a life of 5 years. A) $37,500 B) $32,500 $17,640 D.) $25,200 b) An income producing asset of $140,000 is being depreciated using the 150% Declining Balance method with a salvage value of $20,000, determine the book value after 3 years. (depreciation period 5 years). A) $41,160 B) $78,840 C.) $48,040. D) $20,580 c) An automated inspection system purchased at a cost of $80,000 which is 5-yr property class. 1" year it qualifies for 30% bonus, and it was claimed. The system was sold after 2 years for $ 30,000. The book value after 2 years. A) $26,880 C) $ 23,040 D..) $25,600 B) $6,400 d) A firm operates in a state that has a corporate income tax rate of 5% and is deductible from the federal taxes. If the incremental federal tax is 34%, then the combined effective tax rate is A) 35.9% B) 39%, C). 37.3 D) 22%