Problem 7-19 (algorithmic) Question Help A company purchases an industrial laser for $131,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of $45,000. The before-tax cash flow is estimated to be $75,000 per year a. You, of course, suggested applying the 3-year MACRS (GDS) method instead of the straight-ine method. Given an effective tax rate of 24 % , determine the depreciation schedule and the after tax cash flow b. Based on the MACRS depreciation schedule for this asset, if the industrial laser was sokd for $95,000 in year two (consider year two to be the 'year 2 row in the table in Part (a), what will be the amount of gain (depreciation recapture) or loss on the disposal of the asset at the end of this year? Cick the icon to view the GDS Recovery Rates () for the 3-year property class. a. Detemine the MACRS depreciation amounts and the after tax cash flow for this laser. Fill in the table below (Round to the nearest dollar) Depreciation, ATCF, EOY C 131,000 i More Info GDS Recovery Rates (r for the Six Personal Property Classes Recovery Period (and Property Class) 7-year 20-year Year 3-year 15-year 5-year 0.2000 10-year 0.3333 1 0.1429 0.1000 0.0500 0.0375 0.3200 2 0.4445 0.2449 0.1800 0.0950 0.0722 0.148 0.1920 0.0668 3 0.1749 0.1440 0.0855 0.1152 0.0741 0.1249 0.1152 0.0770 0.0618 5 0.1152 0.0893 0.0922 0.0693 0.0571 0.0576 0.0892 0.0623 6 0.0737 0.0528 7 0.0655 0.0893 0.0590 0.0489 8 0.0590 0.0452 0.0446 0.0655 0.0656 0.0447 0.0591 10 0.0655 0.0590 0.0447 0.0446 11 0.0328 0.0591 12 0.0446 0.0590 0.0446 13 0.0591 14 0.0590 0.0446 0.0591 15 0.0446 16 0.0295 0.0446 17 0.0446 18 0.0446 19 0.0446 20 0.0446 0.0223 21 SThese rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000 These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places Print Done LO