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A piece of newly purchased industrial equipment costs $1,500,000, has a salvage value of $100,000 and is classified as a five-year property under MACRS. Calculate
A piece of newly purchased industrial equipment costs $1,500,000, has a salvage value of $100,000 and is classified as a five-year property under MACRS. Calculate the annual depreciation allowances and the end-of-year book values for this equipment. Assume the tax rate is 21%. Find the after tax salvage value if you sell it for $350,000 in year 4.
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