Blackwater Spring and Metal utilizes the same computerized spring forming machinery in its U.S. and Malaysian plants. Purchased in 2007, the first cost was $750,000 with S = $150,000 after 10 years. MACRS depreciation with n = 5 years is applied in the United States and stan- dard SL depreciation with n = 10 years is used by the Malaysian facility.

(a) Develop and graph the book value curves for both plants.

(b) If the equipment is sold after 10 years for $100,000, calculate the over or under depreciated amounts for each method.