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A public utility purchases a gas-powered electric generator as part of an expansion program. It is expected to be useful, with proper maintenance, for an

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A public utility purchases a gas-powered electric generator as part of an expansion program. It is expected to be useful, with proper maintenance, for an estimated 30 years. The cost is $16 million, installed. The salvage value at the end of 30 years is expected to be 11.5% of the original cost. a. What is the MACRS GDS property class? b. Determine the depreciation deduction (d) and the unrecovered investment (B) for years 1, 5, and the last depreciable year of the generator. di- dlast year $ Bast year Use depreciation percentages to 3 decimal places (4.461%-0.04461) and round final answers to whole dollar. Tolerance is +/- 100. Click here to access the MACRS-GDS Property Classes

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