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A gas-powered electric generator is purchased by a public utility as part of an expansion program. It is expected to be useful, with proper maintenance,
A gas-powered electric generator is purchased by a public utility as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $17.5 million, installed. The salvage value at the end of 30 years is expected to be 8.5% of the original cost.
a. What is the MACRS-GDS property class? 10-Year b. Determine the depreciation deduction (d) and the unrecovered investment (B:) for years 1, 5, and the last depreciable year of the generator. 637500 16362500 B1 = 971210 11978880 ds = $ B5 = $ 379270 dlast year- last year $ Blast year Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. Tolerance is +100Step by Step Solution
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