\begin{tabular}{|llrrr|} \hline 13.2 & Production of petroleum and natural gas & 14 & 7 & 14 \\ 13.3 & Petroleum refining & 16 & 10 & 16 \\ 15.0 & Construction & 6 & 5 & 6 \\ 22.3 & Manufacture of carpets & 9 & 5 & 9 \\ 24.4 & Manufacture of wood products and furniture & 10 & 7 & 10 \\ 28.0 & Manufacture of chemicals and allied products & 9.5 & 5 & 9.5 \\ 30.1 & Manufacture of rubber products & 14 & 7 & 14 \\ 32.2 & Manufacture of cement & 20 & 15 & 20 \\ 34.0 & Manufacture of fabricated metal products & 12 & 7 & 12 \\ 36.0 & Manufacture of electronic components, products, and systems & 6 & 5 & 6 \\ 37.11 & Manufacture of motor vehicles & 12 & 7 & 12 \\ 37.2 & Manufacture of aerospace products & 10 & 7 & 10 \\ 48.12 & Telephone central office equipment & 18 & 10 & 18 \\ 49.13 & Electric utility steam production plant & 28 & 20 & 28 \\ 49.21 & Gas utility distribution facilities & 35 & 20 & 35 \\ 79.0 & Recreation & 10 & 7 & 10 \\ \hline \end{tabular} An asset for driling was purchased and placed in service by a petroleum production company, its cost basis is $55,000, and it has an estimated MV of $12,000 at the end of an estimated useful life of 16 years. Compute the depreciation amount in the second year and the BV at the end of the third year of tife by each of these methods: a. The SL mothod b. The 200% DB method with switchover to SL. c. The GDS. d. The ADS. Click the icon to view the partial listing of depreciatle assets used in business. Click thaicon to view the GOS Recovery Rates (fk). a. Using the SL. method the depreciation amount in the second year is \& (Round to the nearest dollar.) \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ GDS Recovery Rates (rk) for the Six Personal Property Classes } \\ \hline \multirow[b]{2}{*}{ Year } & \multicolumn{6}{|c|}{ Recovery Period (and Property Class) } \\ \hline & 3-year 2 & 5-year? & 7-year? & 10-year & 15 -year b & 20 -year b \\ \hline 1 & 0.3333 & 0.2000 & 0.1429 & 0.1000 & 0.0500 & 0.0375 \\ \hline 2 & 0.4445 & 0.3200 & 0.2449 & 0.1800 & 0.0950 & 0.0722 \\ \hline 3 & 0.1481 & 0.1920 & 0.1749 & 0.1440 & 0.0855 & 0.0668 \\ \hline 4 & 0.0741 & 0.1152 & 0.{249 & 0.1152 & 0.0770 & 0.0618 \\ \hline 5 & & 0.1152 & 0.0893 & 0.0922 & 0.0693 & 0.0571 \\ \hline 6 & & 0.0576 & 0.0892 & 0.0737 & 0.0623 & 0.0528 \\ \hline 7 & & & 0.0893 & 0.0655 & 0.0590 & 0.0489 \\ \hline 8 & & & 0.0446 & 0.0655 & 0.0590 & 0.0452 \\ \hline 9 & & & & 0.0656 & 0.0591 & 0.0447 \\ \hline 10 & & & & 0.0655 & 0.0590 & 0.0447 \\ \hline 11 & & & & 0.0328 & 0.0591 & 0.0446 \\ \hline 12 & & & & & 0.0590 & 0.0446 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{3}{*}{ Asset Class } & \multirow{2}{*}{\multicolumn{2}{|c|}{ MACRS Class Lives and Recovery Periods }} & \multirow{2}{*}{\multicolumn{3}{|c|}{ Recovery Periods }} \\ \hline & & & & & \\ \hline & Descriptions of Assets & Class Life & GDS & ADS & \\ \hline 00.11 & Office furniture and equipment & 10 & 7 & 10 & \\ \hline 00.12 & Information systems, including computers & 6 & 5 & 5 & \\ \hline 00.22 & Automobiles, taxis & 3 & 5 & 5 & \\ \hline 00.23 & Buses & 9 & 5 & 9 & \\ \hline 00.241 & Light general purpose trucks & 4 & 5 & 5 & \\ \hline 00.242 & Heavy general purpose trucks & 6 & 5 & 6 & \\ \hline 00.26 & Tractor units for use over the road & 4 & 3 & 4 & \\ \hline 01.1 & Agriculture & 10 & 7 & 10 & \\ \hline 10.0 & Mining & 10 & 7 & 10 & \\ \hline 13.2 & Production of petroleum and natural gas & 14 & 7 & 14 & \\ \hline 13.3 & Petroleum refining & 16 & 10 & 16 & \\ \hline 15.0 & Construction & 6 & 5 & 6 & \\ \hline 22.3 & Manufacture of carpets & 9 & 5 & 9 & v \\ \hline \end{tabular}