A laser surgical tool has a first cost (unadjusted basis) of $325,000 and a six-year depreciable classlife. The estimated salvage value of the laser is $40,000 at the end of sixyears.

a.Compute the depreciation allowance per year using the Straight-Line (SL) Method.

b.Tabulate the book value of the laser at the end of eachyear for the sixyear period.

c.Assume the half-year convention will be employedsince the laser will be placed in service in the month of October. Compute the depreciation allowanceand book value for eachyear using the Straight-Line (SL) Method withthe half-year convention. Tabulate the depreciation charges andbook values for each of the seven years of depreciation.

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