1) Develop the depreciation and book value schedules using the GDS MACRS method and Table 12.4 for oil and gas drilling equipment that cost $1.2 million. A salvage value of $300,000 is estimated.

Depreciation Rate (%) Year 15 5.00 9.50 8.55 7.70 6.93 R-20 3.75 7.22 6.68 6.18 5.71 10 33.33 44.45 14.81 7.41 20.00 32.00 19.20 11.52 11.52 14.29 24.49 17.49 12.49 8.93 0.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 2 3 4 5 5.29 4.89 4.52 446 4.46 6 5.76 8.92 8.93 4.46 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 7 9 10 3.28 4.46 4.46 446 4.46 4.46 12 13 14 15 16 17-20 21 2.95 446 446 2.23