Answer and Explanation:
The computation is shown below:
For year 1
According to the Company's Books Depreciation
 = (Orginal Cost - Salvage value) ÷ useful Life 
= ($50,000 - $5,000)  ÷ 10 years 
= $4,500
According to the Income Tax Depreciation 
= Cost × MACRS Rate for Year 1 
= $50,000  × 20% 
= $10,000
So, the difference in year 1 is 
= $10,000 - $4,500
= $5,500
For year 2
According to the Company's Books Depreciation
 = (Orginal Cost - Salvage value) ÷ useful Life 
= ($50,000 - $5,000)  ÷ 10 years 
= $4,500
According to the Income Tax Depreciation 
= Cost × MACRS Rate for Year 2
= $50,000  × 32% 
= $16,000
So, the difference in year 1 is 
= $16,000 - $4,500
= $11,500