Please DO NOT use excel or spreadsheet functions. All calculations by hand

4. The results of accelerated tests showed that the average useful life of most laptops is 3 years and have a $50 salvage value at the end of year 3. A company is trying to evaluate how much their laptops have depreciated. According to the straight line (SL) depreciation method, a 2- year old laptop has a book value of $300. The double declining balance (DDB) depreciation values the same laptop at $88.89 and the modified accelerated cost recovery system (MACRS) values at $177.76 a. Determine the first cost of the laptop b. Depreciation rate for the MACRS with n 3 is 33.33% in year 1, 44.45% in year 2, and 14.81% in year 3, Determine the book value in year 3 (BVs) for SL, DDB, and MACRS, and compare with the salvage value. Explain the reason for difference, if any. If laptops are taxable, which depreciation method is more appropriate? Why? c