A manufacturing company has purchased three assets as shown below. The truck was depreciated by the units-of-production method. Usage of the truck was 23,000 miles and 25,000 miles during the first two years, respectively. Click the icon to view the additional data for three assets. Click the icon to view the MACRS depreciation schedules for personal property. Click the icon to view the MACRS percentages for nonresidential real property. Reference 10 15 20 Class Depreciation rate Yearn 200% 200% 200% 200% 150% 150% (a) Calculate the book depreciation for each asset for the first two years. Fill in the table below. (Round to the nearest dollar.) 33.33 44.45 14.29 24.49 1 2 3 4 Lathe 14.81 17.49 n Truck $ 20.00 32.00 19.20 11.52 11.52 5.76 7.41 Building $ $ 1 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 5 2 $ 12.49 8.93 8.92 8.93 4.46 6 7 (b) If the lathe is to be depreciated over the early portion of its life by the DDB method and then by a switch to the SL method for the remainder of its life, when should the switch occur? The switching should occur in year (Round to the nearest whole number.) 8 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 6.56 6.55 3.28 3.750 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 Data table 9 10 11 12 13 14 15 16 17 18 19 20 21 Year to switch from declining balance to straight line Lathe $50,000 Item Initial cost Book life MACRS class Salvage value Book depreciation 12 years 7 years Asset Type Truck $26,000 160,000 miles 5 years $2,600 Unit production (UP) Building $860,300 49 years 39 years $140,000 SL $3,100 DDB - X More info Print Done Print Done The MACRS percentages for nonresidential real property: Straight-line over 39 years with midmonth convention Month Property is placed in Service Year n 2 3 4 5 6 7 8 9 10 11 1 2.4573 2.2436 2.0299 1.8162 1.6026 1.3889 1.1752 0.9615 0.7479 0.5342 0.3205 0.1068 2-39 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 2.5641 40 0.1068 0.3205 0.5342 0.7479 0.9615 1.1752 1.3889 1.6026 1.8162 2.0299 2.2436 2.4573