Skysong Enterprises purchased a delivery truck on January 1, 2020 at a cost of $29.500. The truck has a useful life of years with an estimated salvage value of $5.420. The straight-line method is used for back purposes. For tax purposes, the truck having an MACRS class life of years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition assume that for 2020 and 2021 the company has revenues of $220.000 and operating expenses (excluding depreciation) of $143,000, MACRS Depreciation Rates by Class of Property Recovery Year 3-year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year 15-year (200% DB) (150% DB) 20-year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7:41 11.52" 12.49 1152 7.70 6.177 S 11.52 8.93 9.22 6.93 5.713 9 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4462" 10 11 12 13 14 15 16 17 18 6.55 5.90 4.461 3.28 5.91 4462 5.90 4461 5.91 4.462 5.90 4461 5.91 4.462 2.95 4461 4462 4461 29 4462 20 21 4461 2231 Switchover to straight-line depreciation