Questions 4 (5 points) Rework question 1 using the general depreciation system (GDS) method. TABLE 11-1 Example Class Lives and MACRS Property Classes MACRS Property Class (years) IRS Asset Class Class Life (years) ADR GDS ADS Asset Description 10 6 15 22 12 7 7.5 7 5 5 5 7 15 7 5 5 10 00.11 00.12 00.22 00.241 00.25 00.40 01.11 01.21 13.00 13.30 15.00 20.10 22.2 24.10 32.20 37.11 48.11 48.2 49.12 49.13 49.23 50.00 80.00 Office furniture, fixtures, and equipment Information systems, computers/peripheral Automobiles, taxis Light general-purpose trucks Railroad cars and locomotives Industrial steam and clectric distribution Cotton gin assets Cattle, breeding or dairy Offshore drilling assets Petroleum refining assets Construction assets Manufacture of grain and grain mill products Manufacture of yam, thread, and woven fabric Cutting of timber Manufacture of cement Manufacture of motor vehicles Telephone communications assets and buildings Radio and television broadcasting equipment Electric utility nuclear production plant Electric utility steam production plant Natural gas production plant Municipal wastewater treatment plant Theme and amusement park assets 532-55 TO 7 5 15 7 15 5 15 20 7 IS 7 10 6 5 5 15 22 12 7 7.5 16 6 17 11 6 20 12 24 6 20 28 14 24 12.5 125 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 Year Property Property Property Property Property 1 33.33 20.00 14.29 10.00 5.00 2 44.45 32.00 24.49 18.00 9.50 3 14.81 19.20 17.49 14.40 8.55 20-Year Property 3.750 7.219 6,677 7.41 11.52 11.52 5.76 12.49 8.93 8.92 11.52 9.22 7.37 7.70 6.93 6.23 6.177 5.713 5.285 8.93 4.46 6.55 6.55 6,56 5.90* 5.90 5.91 4.888 4.522 4.462 9 6.55 10 11 12 3.28 5.90 5.91 5.90 4.461 4.462 4.461 13 14 15 5.91 5.90 5.91 4.462 4.461 4.462 2.95 16 17 18 4.461 4.462 4.461 19 20 21 4.462 4.461 2.231 Year Depreciation for Yeart Cumulative Depreciation to Yeart di' Book Value at the End of Yeart d BV 1 2 3 4 5 6