Question: In 2015 a company bought new construction equipment for $100,000. The equipment was sold in 2017. During the time of ownership, the MACRS-GDS method of depreciation was used for tax purposes.

Please help me answer this question! I will give a good review right away! Please show work and equations, I do not understand when people use excel, please write out work. Please write neatly and box answers! Thank you!

(a) How much depreciation did the company claim on the equipment for the year 2015? O A. $16,667 OB. $33,333 C. $20,000 OD. $25,000 (b) How much depreciation did the company claim on the equipment for the year 2017? (Note that annual depreciations for tax purposes are based on calendar years). O A. $9,600 B. $19,200 C. $16,000 D. $32,000 MACRS Class Lives and Recovery Periods Class Life 10 6 3 AWO on o on ch von on oon on Asset Class 00.11 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 32.2 34.0 36.0 37.11 37.2 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 Recovery Periods GDS ADS 7 10 5 5 5 5 5 9 5 5 6 3 4 7 10 7 10 7 14 10 16 5 6 5 9 7 10 5 9.5 7 14 15 20 7 12 6 7 12 7 10 UU. TT TU 0 0 0 0 0 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 32.2 34.0 36.0 37.11 37.2 48.12 49.13 49.21 79.0 Umce Turniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products 6 3 9 4 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 18 28 35 10 5 5 5 5 5 3 7 7 7 10 5 5 7 5 7 15 7 5 7 7 10 20 20 7 ovogowano o o on- 5 5 9 5 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 18 28 35 10 Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation Year NO 000 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 GDS Recovery Rates (tk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0223 (a) How much depreciation did the company claim on the equipment for the year 2015? O A. $16,667 OB. $33,333 C. $20,000 OD. $25,000 (b) How much depreciation did the company claim on the equipment for the year 2017? (Note that annual depreciations for tax purposes are based on calendar years). O A. $9,600 B. $19,200 C. $16,000 D. $32,000 MACRS Class Lives and Recovery Periods Class Life 10 6 3 AWO on o on ch von on oon on Asset Class 00.11 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 32.2 34.0 36.0 37.11 37.2 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 Recovery Periods GDS ADS 7 10 5 5 5 5 5 9 5 5 6 3 4 7 10 7 10 7 14 10 16 5 6 5 9 7 10 5 9.5 7 14 15 20 7 12 6 7 12 7 10 UU. TT TU 0 0 0 0 0 00.12 00.22 00.23 00.241 00.242 00.26 01.1 10.0 13.2 13.3 15.0 22.3 24.4 28.0 30.1 32.2 34.0 36.0 37.11 37.2 48.12 49.13 49.21 79.0 Umce Turniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of petroleum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, products, and systems Manufacture of motor vehicles Manufacture of aerospace products 6 3 9 4 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 18 28 35 10 5 5 5 5 5 3 7 7 7 10 5 5 7 5 7 15 7 5 7 7 10 20 20 7 ovogowano o o on- 5 5 9 5 6 4 10 10 14 16 6 9 10 9.5 14 20 12 6 12 10 18 28 35 10 Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation Year NO 000 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 GDS Recovery Rates (tk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0223