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A tractor for over-the-road hauling is purchased for $95,000.00. It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,800.00. Calculate the depreciation deduction and the unrecovered investment during each year of the tractors life.

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a. Use straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 15200 3800 book value for year 6 b. Use declining-balance depreciation, with a rate that ensures the book value equals the salvage value. Provide depreciation and book value for year 6. 4170 Depreciation for year 6 95000 book value for year 6 $U c. Use double declining balance depreciation. Provide depreciation and book value for year 6. 4170 Depreciation for year 6 95000 book value for year 6 $U d. Use double declining balance, switching to straight-line depreciation. Provide depreciation and book value for year 6. Depreciation for year 6 $U book value for year 6 e. Use sum-of-years-digit depreciation. Provide depreciation and book value for year 6. 4342 Depreciation for year 6 book value for year 6 Do all computations to 5 decimal places and round final answers to 2 decimal places. Tolerance is 50. Click here to access the MACRS-GDS click if you would like to show work for this question Open Show Work

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