Blackwater Spring and Metal utilizes the same computerized spring forming machinery in its U.S. and Malaysian plants. The first cost was $750,000 with S = $150,000 after n = 10 years. MACRS depreciation with n = 5 years is applied in the United States and standard SL depreciation with n = 10 years is used by the Malaysian facility.

(a) If the equipment is sold after 6 years for $100,000, calculate the over- or under-depreciation amounts for each method.

(b) Use a spreadsheet to plot the book values for both methods on a single graph.