Please show all calulations and do not skip any steps.

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000 and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years.

a) Is this asset classified as real or personal property under MACRS?

b) What is the recovery period under the GDS (MACRS)?

c) What is the recovery period under the ADS (MACRS)?

Compute the depreciation amount in the fifth year and the BV at the end of the (fifth) year of life by each

of these methods:

d) SL (answers: $3,428.57, 42,857.14)

e) 150% DB (answers: $4,085.47, 34,045.61)

f) 150% DB with switchover to SL (answers: (max{$2,613.11, 4,085.47}, 34,045.61)

g) GDS (MACRS) (answers: $5,358.00, 13,386.00)

h) ADS (MACRS) (answers: $4,285.71, 40,714.29)