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A piece of newly - purchased industrial equipment costs $ 1 , 2 4 0 , 0 0 0 and is classified as seven -

A piece of newly-purchased industrial equipment costs $1,240,000 and is classified as seven-year property under MACRS. Depreciation on this equipment will impact the company's taxes, and will therefore be a significant factor in determing whether the company should proceed with the purchase.
a) Calculate the annual depreciation under MACRS for all eight years depreciation is allowed. b) Calculate the end-of-year book values for this equipment, using MACRS, for all eight years.

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