Please answer in excel format and show formulas

B G M N o 1 Use the following MACRS table to answer questions related to an asset purchase, depreciation, and sale. 2. 3 4 a. Assume you purchase a piece of 7-year MACRS property for $120,000. Calculate the annual depreciation for years 1-3: 5 3-year 0.333 0.445 0.148 0.074 5-Year 0.2 0.32 0.192 0.115 0.115 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 6 7 7-Year 0.143 0.245 0.175 0.125 0.089 0.089 0.089 0.045 Year 1 8 Year 2 10-Year 0.1 0.18 0.144 0.115 0.092 0.074 0.066 0.066 0.065 0.065 0.033 9 0.058 Year 3 10 11 15-Year 0.05 0.095 0.086 0.077 0.069 0.062 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.03 b. What is the book value of the asset at the beginning of Year 4? Year 8 Year 9 Year 10 Year 11 12 13 20-Year 0.038 0.072 0.067 0.062 0.057 0.053 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.045 0.017 14 15 Year 12 Year 13 c. What is the gain or loss on sale if the asset is sold at the beginning of Year 4 for $53,000? 16 17 Year 14 18 Year 15 19 Year 16 20 Year 17 d. What is the tax savings or additional tax burden associated with this gain/loss? Assume a tax rate of 18%. 21 Year 18 22 Year 19 23 Year 20 Year 21 24 25 26 27 28