A construction company is considering changing its depreciation from the MACRS method to the historical SL method

Question:

A construction company is considering changing its depreciation from the MACRS method to the historical SL method for a general purpose hauling truck. The cost basis of the truck is $100,000, and the expected for depreciation purposes is $8,000. The company will use the truck for eight years and will depreciate it over this period of time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five (i.e., MACRS versus SL)?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...