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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $65,000, and it has an estimated

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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $65,000, and it has an estimated MV of $14,000 at the end of an estimated useful life of 10 years. Compute the depreciation amount in the third year and the BV at the end of the seventh year of life by each of these methods: a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. Using the SL method the depreciation amount in the third year is $ (Round to the nearest dollar.) MACRS Class Lives and Recovery Periods More Info "These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000. 'These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places. An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $65,000, and it has an estimated MV of $14,000 at the end of an estimated useful life of 10 years. Compute the depreciation amount in the third year and the BV at the end of the seventh year of life by each of these methods: a. The SL method. b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. Using the SL method the depreciation amount in the third year is $ (Round to the nearest dollar.) MACRS Class Lives and Recovery Periods More Info "These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000. 'These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places

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