Instructor-created question Question Help Rebel Systems purchased a new mining equipment for its mining activities in Northem Nevada. The table on the right lists the relevant initial costs for this purchase. The service life of the equipment is 4 years and its salvage value for depreciation purposes is expected to be about 25% of the price. Cost Item Price Training Cost $160,000 $16,000 $17,000 a. What is the cost basis of the equipment? b. What are the annual depreciations of the equipment if () the SL method is used? (ii) the MACRS-GDS method is used? (ii) the 150% DB method is used? (iv) the 200% DB method is used? c. Calculate the book values of the equipment at the end of 2 years using all the methods above Answers: (a) The cost basis of the equipment is (Round to the nearest dollar) (b) Annual depreciaitions and book values: (Round to the nearest dollar) Year SL MACRS-GDS 150% DB 200% DB Book values at end of 2 years