Depreciation

1). What is the depreciation deduction each year, using each of the methods below, for an asset that costs $65,000 and has an estimated salvage value of $5,000 at the end of its six-year useful life? Assume its class life is 6 years and its GDS (MACRS) recovery period is 5 years.

a). SL
b). 200% DB
c). 200% DB with switchover to SL
d). GDS (MACRS)

2). A company will be upgrading their computer system (computers and peripheral equipment). The old system currently has a book value (BV) of $25,000. The new system has a market value (MV) of $400,000. The vendor is willing to accept the old system as a trade-in, and reduce the cost of the new system to $325,000.

a). What is the GDS property class for the new computer system?
b). How much depreciation (MACRS) can be deducted each year based on this property class?