Problem 1 Intro Southwest Airlines just bought a new jet for $23,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention): Year 1 2 3 4 5 6 7 8 Depr. 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% rate Part 1 1 8 Attempt 1/20 for 10 pts. What was the depreciation in year 5? 0+ decima SubmitProblem 2 KH Intro 8 years ago, a new machine cost $9 million to purchase. The machine was to be linearly depreciated to zero over 10 years. Part 1 | Attempt 1/20 for 10 pts. What is the annual depreciation (in $)? 0+ decima Submit Part 2 7 8 | Attempt 1/20 for 10 pts. What is the current book value (in $)? 0+ decima SubmitProblem 3 KH Intro You bought a delivery van for your business for $34,000 four years ago, which is your only fixed asset. Last year, your business had revenue of $32,000, costs of $16,000 and an average tax rate of 28%. The business doesn't have any debt. Part 1 1 8 Attempt 1/20 for 10 pts. Into which property class does the van belong? Check IRS publication 946, How to depreciate property. Search for "Which Property Class Applies Under GDS." Enter "3" for 3-year property, "5" for 5-year property, and so on. 0+ decima Submit Part 2 1 8 Attempt 1/20 for 10 pts. What is the depreciation amount for the van for last year (in $)? Use Table A-1 in IRS publication 946 to look up the depreciation percentages for each year. 0+ decima Submit Part 3 1 8 Attempt 1/20 for 10 pts. What is the operating cash flow for last year? 0+ decima Submit