A company purchased petroleum drilling equipment. The following table summarizes the cost data for the new system:

Petroleum drilling equipment Initial cost $1,250,000 Annual operating cost 100,000 Benefits /Year 120,000 Salvage value at the end of its depreciable life 310,000 Use MACRS GDS method to calculate the yearly depreciation allowance and book values. MARR is 18%.

** Please show ALL STEPS INCLUDING FORMULAS