1.)

a. Tabulate the annual depreciation amounts and the book value of the laser at the end of each year.

b. If the tool is sold after six years of depreciation at market value how much would the capital gain or loss be?

2.) Using MACRS GDS depreciation:

a. What is the first-year taxable income?

b. How much will your corporation pay in Federal income taxes for the first year?

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