Sweet Enterprises purchased a delivery truck on January 1, 2020, at a cost of $35,000. The truck has a useful life of 7 years estimated salvage value of $5,040. The straight-line method is used for book purposes. For tax purposes, the truck, having class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. I assume that for 2020 and 2021 the company has revenues of $246,000 and operating expenses (excluding depreciation) of MACRS Depreciation Rates by Class of Property Recovery 3-year Year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year (200% DB) 15-year (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 11.52 7.70 6.177 5 11.52 8.93* 9.22 6.93 5.713 6 7 8 9 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* 10 6.55 5.90 4.461