For the first 2 years, calculate the depreciation expense for a $7,000 car. This is a nonluxury car. Use Table 17.4 and Table 17.5. Modified Accelerated Cost Recovery System (MACRS) for assets placed in service after December 31, 1986 *These classes use a 2005 declining-balance method before switching to the straight-line method. These classes use a 150% declining-balance method before switching to the straight-line method. \$These classes use a straight-line method. Annual recovery for MACRS "Identifies when switch is made to straight line