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Please explain all steps. 3. A laser surgical tool has a cost basis of...

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Accounting

Please explain all steps.image

3. A laser surgical tool has a cost basis of $300,000 and a seven-year depreciable life. The estimated Salvage Value of the laser is $30,000 at the end of seven years. Determine the annual depreciation amounts using the Straight-Line method versus MACRS GDS. Unfortunately, the equipment does not qualify for 100% bonus depreciation. a. Tabulate the annual depreciation amounts and the book value of the laser at the end of each year. b. If the tool is sold after six years of depreciation at market value how much would the capital gain or loss be? 4. Your company was formed to develop virus killing soap during the pandemic. You bought land for $300,000, had a $1,000,000 factory building erected, and installed $500,500 worth of soap research formulation and experimental equipment. The facility was finished on March 1, and the government paid you $500,000 for the virus killing soap. Supplies and operating expenses excluding the capital expenditures were $100,000. Using MACRS GDS depreciation: a. What is the first-year taxable income? b. How much will your corporation pay in Federal income taxes for the first year

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