Max Metal Inc. uses the same type of production line in the US and Malaysia plants. The first cost was $800,000 with a salvage value of $180,000 at the end of year 8. MACRS depreciation with n=5 years is applied in the US and standard SL depreciation with n=8 years is used by the Malaysian facility.

a. If the equipment is sold after 6 years for $180,000, calculate the over or under depreciation amounts for each method.

b. Use a spreadsheet to plot the book values for both methods on a single graph.