=+LG 5 P11–15 Depreciation Tasty Bakery Corporation is evaluating the acquisition of a baking machine that costs $72,000 and requires $3,000 in installation costs. If the corporation depreciates the machine under MACRS, using a 5-year recovery period

(see Table 4.2 for the applicable depreciation percentages), determine the depreciation charge for each year.

Anticipated Changes in Current Assets and Current Liabilities Expense accruals -$20,000 Inventory + 50,000 Accounts payable + 40,000 Accounts receivable + 70,000 Cash 0