On January 1, 2019, Delta Company acquired new equipment with an estimated useful life of 5 years. Cost of the equipment was $5,000,000 with a residual value of $250,000. For income tax purposes, this machinery qualifies as 5-Year property. 3 Years Year 1 Year 2 Year 3 Year 4 MACRS Rates 33.33% 44.45% 14.81% 7.41% Instructions Compute the amounts of depreciation recognized in each of first 4 years (2019, 2020 & 2021) under each of the depreciation methods listed below.

a. Straight Line Method

b. MACRS Method