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An energy production company has the following information regarding the acquisition of new gas turbine equibment. Purchase price =$660,000 Transoceanic shipping and delivery cost =$4,300
An energy production company has the following information regarding the acquisition of new gas turbine equibment. Purchase price =$660,000 Transoceanic shipping and delivery cost =$4,300 Installation cost (1 technician at $1,600 per day for 4 days) =$6,400 Tax recovery period =13 years Book depreciation recovery period =8 years Salvage value =11% of purchase price Operating cost (with technician) =$185,000 per year The manager of the department asked your friend in accounting to enter the appropriate data into the tax-accounting program. What are the values of B,n, and S in depreciating the asset for tax purposes that he should enter? The value of B is determined to be S The value of S is determined to be 5 The value of n is determined to be
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