An asset was purchased for $100,000. It's estimated residual value is $20,000. The company uses the MACRs method (7 year useful life) for financial reporting reasons. It intends to leave the asset in service for 7 years. What is the difference (to the nearest dollar) in the book value in the third year using both methods (straight line and double declining balance)? HINT: Solve for both SL and DB in the third year. $14,439 O $36,000 $12.600 $21.984 A reduction of a company's expense (savings) as a result of a project's implementation is considered a(n): O Expense Capital improvement Revenue O Financial Activity