Sprint LTE 5:15 AM State University of New York Magnum Construction Company, Inc. bought equipment for $2,250,000 on Jan. 1, 2014 The company considered various depreciation methods for financial reporting purposes (pro-rated by month). The company estimates the equipment will have a useful life of 10-ycars with a residual value of $140,000. For tax purposes the asset falls into the seven-year category. Hours 50,000 5,500 6,000 4,500 Estimated total hours of usage Actual usage Instructions Calculate the following a Assuming the straight-line method is used: (1) The depreciation expense for the year ended Dec. 31, 2014 (2) The book value of the assets as of December 31, 2015 (2nd year) (3) The depreciation expense for the nine-month period ending Sept. 30, 2016 (4) The gain or loss if the asset is sold on Sept. 30, 2016 for> $1,700,000 bAssuming double declining balance is used (1) The depreciation expense for the year ended Dec. 31, 2014 (2) The book value of the assets as of December 31, 2015 (2rd year) (3) The depreciation expense for the nine month period ending Sept. 30, 2016 (4) The gain or loss if the asset is sold on Sept. 30, 2016 for> $1,700,000 cAssuming sum of the years digits is used: (1) The depreciation expense for the year ended Dec. 31, 2014 (2) The book value of the assets as of December 31, 2015 (2rd year) (3) The depreciation expense for the nine month period ending Sept. 30, 2016 (4) The gain or loss if the asset is sold on Sept. 30, 2016 for> $1,700,000 ssuming units of output is used (1) The depreciation expense for the year ended Dec. 31, 2014 (2) The book value of the assets as of December 31, 2015 (2rd year) (3) The depreciation expense for the nine month period ending Sept. 30, 2016 (4) The gain or loss if the asset is sold on Sept. 30, 2016 for > $1,700,000 e The tax basis (undepreciated cost) the asset as of December 31, 2017 e taxable gain or loss if the asset is sold on Dec. 31, 2017 for $852,900 MACRS tax depreciation rates Asset classification Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-year 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46%