Your company purchased distillation equipment for $800 000. The anticipated life of the equipment is 5 years and the estimated salvage value is $100 000. Compute the schedules for the annual depreciation and book value using Straight Line (SL) depreciation, Double Declining Balance (DDB) and Modified Accelerated Cost Recovery System (MACRS). Let Dt be the depreciation charge for year t and BVt be the book value after t years of service. Report your results in the table below. (Use Table 12.2 on Page 326 of the textbook for the MACRS depreciation rates.)

Dt SL BV $800 000 Dt Year, t 0 DDB BV $800 000 MACRS Dt $800 000 BV 1 2 3 4. 5 6