An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $152290, and it has an estimated market value of $31000 at the end of an estimated useful life of 5 years.

a) (2 points) Compute the depreciation payments using SL (straight line) method.

b) (3 points) Use DDB (Double declining balance) method and calculate the depreciation payments. (If it is necessary switch to SL)

c) (3 points) If the market value at end of the 5 years is estimated as $0, calculate the DDB payments. (If it is necessary switch to SL)