Class 3 5 7 10 15 20 Year n Depreciation Rate 200% 200% 200% 200% 150% 150% 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52* 12.49 11.52 7.70 6.177 Given: o Cost basis for a drill press: $230,000 o Recovery period: 7-year MACRS oSold the drill press after 3 years for $150,000 o Tax rate for capital gains and ordinary gains: 34% O Find: o Taxable gains/loss (2 - Points) o Net proceeds from sale (3 - Points) 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55* 5.90* 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462* d 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 Answers: Taxable Gains/Loss Net Proceeds 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 Show work below 19 4.462 20 4.461 21 2.231