3. A laser surgical tool has a cost basis of $300,000 and a seven-year depreciable life. The estimated Salvage Value of the laser is $30,000 at the end of seven years. Determine the annual depreciation amounts using the Straight-Line method versus MACRS GDS. Unfortunately, the equipment does not qualify for 100% bonus depreciation.

1. Tabulate the annual depreciation amounts and the book value of the laser at the end of each year.

2. If the tool is sold after six years of depreciation at market value how much would the capital gain or loss be?