A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company in 2021. The cost basis was $300,000. The plan is to use the equipment and dispose it after about 8 years of service a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2023, instead of 2029, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreciations? MACRS Class Lives and Recovery Periods Recovery Periods Asset Class Descriptions of Assets Class Life GDS ADS 00.11 Office furniture and equipment 10 7 10 Click the icon to view the partial listing of depreciable assets used Click the icon view the GDS Recovery Rates (rk). business. 00.12 00.22 Information systems, including computers Automobiles, taxis 6 5 5 3 5 5 00.23 Buses 9 5 9 00.241 Light general purpose trucks 4 5 00.242 Heavy general purpose trucks 6 F 6 00.26 01.1 Tractor units for use over the road Agriculture 4 4 10 7 10 10.0 Mining 10 10 13.2 Production of petroleum and natural gas 14 14 13.3 a). The GDS recovery period is 7 years. The ADS recovery period is 7 years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Petroleum refining 16 10 15.0 Construction 6 22.3 Manufacture of carpets 9 5 24.4 Manufacture of wood products and furniture 10 7 10 28.0 Manufacture of chemicals and allied products 9.5 5 9.5 30.1 Manufacture of rubber products 14 7 14 Year The GDS depreciation deductions, $ 32.2 Manufacture of cement 20 15 20 2021 $ 42857 34.0 Manufacture of fabricated metal products 12 7 12 2022 $73469 36.0 Manufacture of electronic components, products, and systems 6 5 6 37.11 Manufacture of motor vehicles 12 7 12 2023 $ 52469 37.2 Manufacture of aerospace products 10 7 10 2024 $ 37469 48.12 Telephone central office equipment 18 10 18 49.13 2025 Electric utility steam production plant 28 20 28 $26874 49.21 Gas utility distribution facilities 35 20 35 2026 $26873 79.0 Recreation 10 7 10 Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) - X More Info Year 2021 The ADS depreciation deductions, S $42857 2022 $ 61875 GDS Recovery Rates (rk) for the Six Personal Property Classes 2023 $ 61875 2024 $37500 2025 $ 37500 2026 $ 37500 c). The GDS depreciation deduction for the year 2023 would be $ 52469. (Round to the nearest dollar.) The ADS depreciation deduction for the year 2023 would be $ 61875. (Round to the nearest dollar.) d). The book value at end of 2023 based on GDS depreciations is $ 131205 The book value at end of 2023 based on ADS depreciations is $ 133393. (Round to the nearest dollar.) 2027 $18750 Recovery Period (and Property Class) Year 3-year 5-year 7-year 10-year 15-year 20-year 1 0.3333 0.2000 0.1429 0.1000 0.0500 0.0375 2 0.4445 0.3200 0.2449 0.1800 0.0950 0.0722 0.1481 0.1920 0.1749 0.1440 0.0855 0.0668 4 0.0741 0.1152 0.1249 0.1152 0.0770 0.0618 5 0.1152 0.0893 0.0922 0.0693 0.0571 6 0.0576 0.0892 0.0737 0.0623 0.0528 7 0.0893 0.0655 0.0590 0.0489 8 0.0446 0.0655 0.0590 0.0452 9 0.0656 0.0591 0.0447 10 0.0655 0.0590 0.0447 11 0.0328 0.0591 0.0446 12 0.0590 0.0446 13 0.0591 0.0446 14 0.0590 0.0446 15 0.0591 0.0446 16 0.0295 0.0446 17 0.0446 18 0.0446 19 0.0446 20 0.0446 21 0.0223