MACRS, ADS (LO. 6) The Gladys Corporation buys office equipment costing $1,114,000 on May 12, 2020. In 2023, new and improved models of the equipment make it obsolete, and Gladys sells the old equipment for $34,000 on December 27, 2023. Refer to the MACRS Depreciation Tables to answer the following questions. Note: Do not round any division. Round computed yearly depreciation amounts to the nearest whole dollar. Hint: Don't forget about mid-year convention in the year of disposal when calculating depreciation. a. Assuming that Gladys takes the maximum cost-recovery deduction allowable on the equipment (7 year recovery period), but does not want to claim bonus depreciation, the Corporation would have a gain of $ on the sale. b. Assuming that Gladys takes the minimum cost-recovery deduction allowable on the equipment (10 year recovery period), the Corporation would have a loss of $ on the sale. Feedback Check My Work A taxpayer decides which depreciation method to use by first choosing whether to maximize or minimize the depreciation deduction in the year of acquisition