The M&M Company purchased a new punch press in 2005 at a cost of $265,000. M&M also paid $46,000 to have the punch press delivered and installed. The punch press has an estimated useful life of 12...

The M&M Company purchased a new punch
press in 2005 at a cost of $265,000. M&M also
paid $46,000 to have the punch press delivered and
installed. The punch press has an estimated useful life
of 12 years, but it will be depreciated using MACRS
over its seven-year property class life.
(a) What is the cost basis of the punch press?
(b) What will be the depreciation allowance in each
year over seven years?