Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco. The table on the right lists the relevant initial costs for this purchase. The service life of the system is 4 years and its salvage value for depreciation purposes is expected to be about 25% of the hardware cost. a. What is the cost basis of the device? b. What are the annual depreciations of the device if (i) the SL method is used? (ii) the 150% DB method is used? (iii) the 200% DB method is used? c. Calculate the book values of the device at the end of 4 years using all the methods above. Answers: (a) The cost basis of the device is $ (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2023, instead of 2029, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreclations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a). The GDS recovery period is years. The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) a). Determine the MACRS-GDS and MACRS-ADS recovery periods for the equipment. b). Determine the annual GDS and ADS depreciation deductions for this property. c). If the company disposes the equipment and sells it sooner in 2023, instead of 2029, what would the the GDS and ADS depreciations for that year? d). Based on (c), what are the corresponding book values under the GDS and ADS depreclations? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a). The GDS recovery period is years. The ADS recovery period is years. b). Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Determine the ADS depreciation deductions for this property. (Round to the nearest dollar.) c). The GDS depreciation deduction for the year 2023 would be $. (Round to the nearest dollar.) The ADS depreciation deduction for the year 2023 would be $. (Round to the nearest dollar.) d). The book value at end of 2023 based on GDS depreciations is $ The book value at end of 2023 based on ADS depreciations is $. (Round to the nearest dollar.)