ciation is used. Use a 7-year MACRS class. -48 O'Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using the following depreciation methods? (a) Straight-line with N = 8 and S = 2000 (b) Double declining balance with N = 8 (c) 40% bonus depreciation with the balance using 7-year MACRS