12.

Xavier Corporation plans to purchase a new machine to replace an older machine on its

assembly line. The new machines purchase price is $550,000, and it will cost $75,000 to

have the machine shipped and $55,000 to have the machine installed. The old machine,

which is fully depreciated, can be sold to another company for $45,000. The new

machine falls into the MACRS 5 year class (pg 184 or 205). Compute the depreciation

expenses associated with the new machine for the next five years?