The first cost of an equipment for water transportation is $45,000. This asset can be disposed for $5,000 at the end of its depreciable life (recovery period). If the two methods of MACRS (GDS) and Straight Line (SL) are used to depreciate this asset: 1. Calculate the depreciation cost of the asset in years 2, 3 and 5 using both the MACRS and the SL methods. (12 points) 2. Which method will return a higher Book Value for the asset at the end of year 5? Calculate both values and compare them with each other. (9 points) 3. Using the MACRS method, based on the given salvage value at the end of the recovery period and comparing that with the book value at the end of that year, will there be a loss or a gain from selling this asset? Support your argument by calculations. (4 points)