Numerical answers are to be stated with 2 decimals. PWA Depreciation PWA Berhad will be installing a new equipment to support its' product expansion. The equipment costs RM1.2 million, with installation and testing costs of RM20,000. The equipment has a life of 7 years, and will be depreciated based on MACRS, 7-year convention and will be sold in Year 5 for 20% of the cost. The tax rate is 24%. The MACRS rate is as follows: 1.The asset cost to be depreciated is RM 2.Depreciation expenses in Year 1 is RM 3.Depreciation expenses in Year 4 is RM 4.Accumulated depreciation in Year 2 is RM 5.Accumulated depreciation in Year 5 is RM 6.Book Value at Year 7 is RM 7.The equipment will be sold at RM 8.Gain/ Loss on Disposal is RM (If it is a loss in disposal, state your answer as negative, xxx ) 9. After tax cash flow/ Tax Shield on disposal is RM. (If it is a tax shield, state your answer as negative, xxx )