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 calm bonus depreciation, the Corporation would have a of b. Assuming that Gladys takes the minimum cost-recovery deduction allowable on the equipment (10 year recovery period), the Corporation would have a of on the sale on the sale. Table A10-2 CRS Depreciation for Property Other Than Real Estate Applicable convention: mid-year (applicable methods: 200% or 150% declining balance, switching to straight-line) And the recovery period is If the 3 Years recovery 5 Years 7 Years 10 Years 15 Years 20 Years year is The depreciation rate is 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 12 4.462 5.90 4.461 13 5.91 4.462 14 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 2.231 5.90 4.522 5.90