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Carolina Nursing Home (CNH) recently purchased new equipment for $200,000. A total of $60,000 in building renovations were required to accommodate the new equipment. The

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Carolina Nursing Home (CNH) recently purchased new equipment for $200,000. A total of $60,000 in building renovations were required to accommodate the new equipment. The useful life of the new equipment is estimated to be 4 years, after which it can be sold for $20,000. The equipment falls into the MACRS three-year class. a. Place the nroner numbers in the cells below. b. What annual depreciation expense will be reported on the financial statements of CNH? Annual depreciation expense \$0 c. Create a depreciation table to identify the annual depreciation expenses that CNH will report in each year for tax purposes. d. Suppose CNH sells the equipment for $20,000 at the end of Year 3. Their tax rate is 21%. Would the tax liability of the company increase or decrease, or not change? If the tax liability changes, what is the dollar value of the change

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