A loader has an initial cost of $154,000 and an estimated useful life of 8 years. The salvage value after 8 years of use is estimated to be $10,000.

a. What is the annual depreciation amount if the straight-line method of depreciation accounting is used?

b. What is the book value after 6 years if the straight-line method of depreciation accounting is used?

c. What is the annual depreciation amount in the fifth year if the sum-of-the-years method of depreciation accounting is used?

d. What is the book value at the end of the sixth year if the sum-of-the-years method of depreciation accounting is used?

e. What is the annual depreciation amount in the fourth year if the double-declining-balance method of depreciation accounting is used?

f. Assume this loader has a recovery period of 5 years in The Modified Accelerated Cost Recovery System (MACRS), list annual depreciation amount and book value for every depreciable year. (Annual depreciate rate is given in the following table)