Loretta Livermore Labs purchased R&D equipment costing $500,000. The sal $50,000, and expected life is 5 years. a. What is the total depreciation through year 3 using MACRS for a 5 year pre b. What is the book value at the end of year 3, using MACRS? c. Using straight line depreciation, what would the annual depreciation be? Loretta Livermore Labs purchased R&D equipment costing $500,000. The sal $50,000, and expected life is 5 years. a. What is the total depreciation through year 3 using MACRS for a 5 year pre b. What is the book value at the end of year 3, using MACRS? c. Using straight line depreciation, what would the annual depreciation be