Assumptions: Assume all interest is compounded annually unless noted otherwise. Unless stated otherwise, assume the interest rate, 10%. For the Problems 4 refer to the following Your company has purchased a larger new truck-tractor for over-the-road-use (asset class 00.26). It has a total cost basis of $195,000. lts market value (MV) at the end of five-years is estimated as $40,000. The revenue generated is estimated to be $45,000 per year. 4. (15 points) Depreciation is computed under the MACRS(GDS) system. Determine the following (8 points) What is MACRS depreciation in the fourth year? (7 points) What is the book value (BV) at the end of year three (15 points) For the truck-tractor purchase of Problem #4, determine the depreciation for each year of the life of the project if a DB(200%) to SL "switchover" method is used. 5, (10 points) If a SL depreciation method is used for the purchase of this truck, compute the tax owed at EOY4 if the tax rate is 35%. 6. Assumptions: Assume all interest is compounded annually unless noted otherwise. Unless stated otherwise, assume the interest rate, 10%. For the Problems 4 refer to the following Your company has purchased a larger new truck-tractor for over-the-road-use (asset class 00.26). It has a total cost basis of $195,000. lts market value (MV) at the end of five-years is estimated as $40,000. The revenue generated is estimated to be $45,000 per year. 4. (15 points) Depreciation is computed under the MACRS(GDS) system. Determine the following (8 points) What is MACRS depreciation in the fourth year? (7 points) What is the book value (BV) at the end of year three (15 points) For the truck-tractor purchase of Problem #4, determine the depreciation for each year of the life of the project if a DB(200%) to SL "switchover" method is used. 5, (10 points) If a SL depreciation method is used for the purchase of this truck, compute the tax owed at EOY4 if the tax rate is 35%. 6