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A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine is $200,000 and the firm spent $20,000 for

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A firm is investing in an equipment which falls in 5-years MACRS. The cost of the machine is $200,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for $30,000. If the firm is in 34% tax bracket compute the tax savings from depreciation in year-5. a. $14,960.00 b. $13,600.00 c. $11,333.33 d. $8,616.96

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