Response to the following problem:
Jazzy Power Chair Co. paid $165,000 for equipment that is expected to have a seven-year life. The residual value of equipment is 10% of the asset's cost.
Select the appropriate MACRS depreciation method for income tax purposes. Then determine the extra amount of depreciation that Jazzy Power Chair Co. can deduct by using MACRS depreciation, versus straight-line, during the first two years of the equipment's life.