Question 3 The depreciation data for a property are as follows: Book Value $350,000 Salvage value = $50,000 Depreciable life = 5 years a) Compute the second year depreciation (d) for the asset using: Straight line method (3 points) . Double declining balance method (3 points) Sum of the year digits method (3 points) . b) Develop the depreciation schedule using the MARCS-GDS method. (6 Points) TABLE 11-3 MACRS Depreciation for Personal Property: Half-Year Convention Applicable Percentage for Property Class 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Recovery Year Property Property Property Property Property Property 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55* 5.90* 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 591 4462 456 789 10 15 pts -0 b) Develop the depreciation schedule using the MARCS-GDS method. (6 Points) TABLE 11-3 MACRS Depreciation for Personal Property: Half-Year Convention Applicable Percentage for Property Class Recovery 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Property Property Property Property Property Property 1 31.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 6.55* 5.90* 4.888 4.46 6.55 5.90 4.522 6.56 5.91 4.462 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Book Value at the End of Year t Year 6 9 10 11 12 13 14 15 16 17 18 19 285 20 21 MACRS % Depreciation for Year t Cumulative Depreciation to Year t pe Year MACRS % P% 3 1 2 3 4 5 6 Upload Choose a File Depreciation for Year t de Cumulative Depreciation to Year t d Book Value at the End of Year t BV