ABC Firm has purchased a new machine in January $2024.$ The information given below:

Price of Machine $$1\mathrm{.}44\mathrm{.}000$

Operating Expense $$150\mathrm{.}000$

Shipping$/$Installation Expenses$$60\mathrm{.}000$

Insurance Expense $$100\mathrm{.}000$

Depreciable Life of Machine $5$ years

tax rate $20\%$

a$)$ Compute the depreciation charges of the asset according to the MACRS $5-$year property

class$/6$ recovery years. $($based on Straight Line Method for $1$st$,2$nd$,5$th$,6$th recovery years

and Double Declining Balance Method for $3$rd and $4$th recovery years$)(25$p$)$

b$)$ Compute the tax advantage amount if the Firm will sell the machine two recovery years later. Selling price is $$900\mathrm{.}000.(10$p