GEO Labs is evaluating the acquisition of a light truck that will increase the speed and amount of area serving. The acquisition of this light truck at a cost of $100,000 will result in earnings before depreciation and taxes of $34,000 in years 1 to 3, and $14,500 in years 4 to 6. The company tax rate is 30% and cost of capital is 10%

(REMEMBER TO USE TABLES 12-11 AND 12-12)

PRESENT YOUR ANSWER ROUNDED TO 0 DECIMAL PLACES AND DON'T USE COMMA SEPARATORS

HOW MUCH IS THE DEPRECIATION IN YEAR 3

Table 12-12 Depreciation Percentages (Expressed in Decimals) 5-Year MACRS 7-Year MACRS 10-Year MACRS 15-Year MACRS 20-Year MACRS Depreciation Year 1-Year MACRS 0.333 0.445 1 0.200 0.143 0.100 0.050 0.038 0.320 0.245 0.180 0.095 0.072 3..... 0.148 0.192 0.175 0.144 0.086 0.067 4 0.074 0.115 0.125 0.115 0.077 0.062 S 0.115 0.089 0,092 0.069 0.057 6 0.058 0.089 0.074 0.062 0.053 7........ 0.089 0,066 0.059 0.045 0.045 0.066 0.059 0.045 9. 0,065 0.059 0.045 10 0,065 0.059 0.045 0,033 0.059 0.045 12 0.059 0.045 13 0.059 0.045 14 0.059 0.045 15 0.059 0.045 16 0.030 0.045 17 0.045 18 0.045