Engineering Economy class. Book: Engineering Economic Analysis, 13th Edition, Newnan

Question 3) (45 points) A piece of construction equipment (asset class 15.0) was purchased by Jones Construction Company. The cost basis is S580,000. a) b) c) Determine the GDS depreciation deduction for this property. Determine the ADS depreciation deduction for this property. If Jones Construction Company can choose between GDS and ADS which one should they use and why? ADS recovery rates are not given in the text book. You can find the proper property class and use the rates from the table below. Recovery Year 4 10.0020.00 20.0020.0020.0010.00 8.33 16.67 16.67 16.67 16.67 16.67 8.33 The values are given in percentage