Your company has just purchased a lathe for $27, 750. The lathe has a useful life of 10 years although it follows a 7 year MACRS depreciation schedule. The lathe has a $12,000 salvage value at the end of its useful life. Determine the amount of depreciation of this asset in year three, when the asset will be sold, using a double declining balance depreciation method. Response Feedback: To find the depreciation amount you will use the declining balance depreciation formulas below D_n = alpha/(1 - alpha)^n - 1 alpha = 1/N(multiplier)