Depreciation and Taxes

Auburn Company purchased an asset on January $1,$ Year $1$ for $$150,000.$ The asset has a MACRS life of $7$ years. The residual value of the asset is $$35,000.$ Refer Exhibit $11\mathrm{.}3$ to answer the following questions.

Calculate the depreciation expense for Year $1$ using MACRS.

Calculate the depreciation expense for Year $2$ using MACRS.