Problem
Muddy Fields Earthmoving can purchase a bulldozer for $30,000. After 7 years of use, the bulldozer should have a salvage value of $5000.
(a) Under MACRS, what depreciation is claimed in year 3?
(b) Under the straight-line (pre-1981) method, what depreciation is claimed in year 3?
(c) Under the SOYD (pre-1981) method, what depreciation is claimed in year 3?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.