An equipment worth $250,000 is classified as a 7-year MACRS property. Assume a tax rate of 20%.

1. What is the book value of this asset at the end of years 1-8?
2. What is the depreciation expense in each of the years 1-8?
3. If the equipment can be sold for $5,000 at then end of Year 5, what is the after-tax salvage value?
4. If the equipment can be sold for $80,000 at then end of Year 5, what is the after-tax salvage value?

The MACRS allowance percentages for the 7-year asset class are as follows, commencing with year one: 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, 8.92%, 8.93%, and 4.46%.

Also upload your excel files showing your work.