Question
During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $125,000. It replaced an
During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $125,000. It replaced an older, smaller mixing tank that had a BV of $20,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $102,000. The MACRS class life for the new mixing tank is 9.5 years. If 200% DB depreciation had been applied to this problem, what would be the accumulative depreciation through the end of year four
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