an asset for drilling was purchased and placed in service by a petroleum production company. its costs basis is $60,000 and it has an estimated sv of $12,000 at the end of an estimated useful life of 14 years. a. suppose your company uses straight-line depreciation. what is the depreciation deduction in the fifth year of operation? b. suppose your company uses straight-line depreciation. what is the book value of the asset at the end of the third year? c. suppose your company uses 200% declining balance depreciation. what is the depreciation deduction in the fifth year of operation? d. suppose your company uses 200% declining balance depreciation. what is the book value of the asset at the end of the third year?
