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2. WindPower, Inc. designs and commissions the manfacture of a wind powered inverter-based constant voltage generator for research and experimentation with low-rated, highly variable, wind

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2. WindPower, Inc. designs and commissions the manfacture of a wind powered inverter-based constant voltage generator for research and experimentation with low-rated, highly variable, wind fields as a form of alternative energy. This unit costs $35,000 plus $3000 for shipping and installation, and is MACRS 5 yr property. After 3 years, WindPower had no further use for the unit and was able to sell it for $2000, less $00-ferremeval. WindPower had depreciated the generator cost over the 3 years with an estimated life of 5 years a) What is the total cost basis for this generator? b) What is the net market value actually received after three years? By what amount did the book value differ from the net market value at the end of 3 years if the following depreciation method was used? c) Straight-line depreciation Double declining balance depreciation ) MACRS depreciation

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