An earthwork contractor is considering to purchase a new excavator which will cost $130,000 including tax and transportation expenses. Answer the following questions about depreciation. Note: GDS (General Depreciation System) are ADS (Alternative Depreciation System) are two methods of Modified Accelerated Cost Recovery System (MACRS). Using the ADS method, what is the book value at the end of year 4? Using the GDS method, what is the cumulative depreciation after 3 years? Using the GDS method, what is the book value at the end of 4th year? Using the GDS method, what is the depreciation in year 2? Using the ADS method, what is the depreciation in year 7? Using the ADS method, what is the cumulative depreciation after 3 year? 1. 2. 3. 4. 6. 7. 8. $41,600 5. $54,167 9. $92,560 $22,464 $10,833 $32,500 $9,048 $122,512 $67,600 10. $24,524