What is the book value of the research equipment described in Problem 1 after 3 years? Next, supposing that the equipment is sold for $30,000 at the end of the third year, how much gain or depreciation capture is there? Answer both questions using each of the depreciation methods listed

(a) Straight line

(b) Double declining balance

(c) Sum-of-years-digits

(d) 100% bonus depreciation

(e) Modified accelerated cost system (MACRS); research equipment belongs to the 5-year MACRS class

Problem 1 says : A company paid $50,000 for some research equipment, which it believes will have zero salvage value at the end of its 5-year life