Problem 7-9 (algorithmic) Question Help A global positioning system (GPS) receiver is purchased for $6,000. The IRS informs your company that the useful (class) life of the system is eight years. The expected market (salvage) value is $500 at the end of year eight. a. Use the straight line method to calculate depreciation in year two. b. Use the 200% declining balance method to calculate the cumulative depreciation through year three. c. Use the MACRS method to calculate the cumulative depreciation through year four d. What is the book value of the GPS receiver at the end of year three when straight line depreciation is used? Click the icon to view the summary of the principal features of GDS under MACRS. Click the icon to view the GDS Recovery Rates (r)