On January 1, 2020, Smith-Jones Company purchased office furniture for $80,000. Other data on the purchase include the following: Estimated useful life MACRS life 10 years 7 years Estimated residual value $5,000 Financial statement depreciation Straight-line MACRS depreciation 200% declining-balance The MACRS Depreciation table is as follows: MACRS Depreciation as a Percentage of the Cost of the Asset Year of Life 45 69 9 10 11 3 5 7 10 33.33% 20.00% 14.29% 10.00% 44.45% 32.00% 24.49% 18.00% 14.81% 19.20% 17.49% 14.40% 7.41% 11.52% 12.49% 11.52% 11.52% 8.93% 9.22% 5.76% 8.92% 7.37% 8.93% 6.55% 4.46% 16.55% 6.56% 6.55% 3.28% Required: a. Compute the depreciation deduction for the 2020 tax return. b. Assume the asset is sold on April 1, 2028 for $3,000. Compute the gain/(loss) on disposal for both financial reporting and tax reporting Financial $ -19,000 X Tax 3,000 $ 11,432