Comparing Depreciation Methods 11-27 The XYZ Block Company purchased a new office E computer and other depreciable computer hardware for $12,000. During the third year, the computer is declared obsolete and is donated to the local commu- nity college. Using an interest rate of 10%, calculate the PW of the depreciation deductions. Assume that no salvage value was initially declared and that the machine was expected to last 5 years. (a) Straight-line depreciation (b) Double declining balance depreciation (c) 100% bonus depreciation (d) MACRS depreciation (e) Which method is preferred for determining the firm's taxes