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A firm recently purchased new production equipment for $5,000,000. It is classified as a 7-year asset by the IRS. What is the depreciation amount allowed
A firm recently purchased new production equipment for $5,000,000. It is classified as a 7-year asset by the IRS. What is the depreciation amount allowed for year 4 if the firm decides to use the MACRS depreciation method?
a. $714,286 b. $624,500 c. $446,500 d. $874,500
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