MACRS = modified accelerated cost recovery system

For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. 1. Company A purchased office equipment for $400,000. The functional life is 10 years and the salvage value is 10% of the purchase price. Determine the depreciation amount on the 4th year and the book value at the end of the 3 year using: a. Straight Line Method b. Double Declining Balance Method 6. Sum-of-Years Digits Method d. Declining Balance Method with Switchover to SL MACRS GDS (assume that the assets will be disposed of on the 3 year) e