You have started a business and purchased a new truck (asset class 00.22). The cost basis for depreciation purposes is $175,000. Salvage value at the year six is $20,000. Assume it will be depreciated under the GDS: a. What is the MACRS depreciation in the third year? b. What is the cumulative depreciation through the end of year three? c. What is the BV at the end of third year if the equipment is disposed of at that time? d. What will be the gain(loss) for tax if you sell the equipment for $40,000 at the end of year three? Repeat above calculactions assuming it will depreciate under ADS. You have started a business and purchased a new truck (asset class 00.22). The cost basis for depreciation purposes is $175,000. Salvage value at the year six is $20,000. Assume it will be depreciated under the GDS: a. What is the MACRS depreciation in the third year? b. What is the cumulative depreciation through the end of year three? c. What is the BV at the end of third year if the equipment is disposed of at that time? d. What will be the gain(loss) for tax if you sell the equipment for $40,000 at the end of year three? Repeat above calculactions assuming it will depreciate under ADS