NO EXCEL!

1. A lumber company purchases and installs a wood chipper for $175,000. The chipper is classified as MACRS 7-year property. The chipper's useful life is 8 years. The estimated salvage value at the end of 8 years is $28,000. Using depreciation, compute the first three-year depreciation. a) Straight Line Depreciation b) MACRS 7-Year Depreciation c) Declining Balance Depreciation d) Double Declining Balance Depreciation