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I need hlelp with question #7. Thank you Problem 5. Johnson Family Care Inc. is a large ambulatory care center that provides comprehensive 24-hour primary
I need hlelp with question #7. Thank you
Problem 5. Johnson Family Care Inc. is a large ambulatory care center that provides comprehensive 24-hour primary and specialty care to a large suburban population in Pennsylvania. The center recently purchased new clinical laboratory equipment for $1.1 million and spent $22,000 to renovate a center room to accommodate the new equipment. The useful life of the equipment is estimated to be ten years, after which it can be sold for $75,000. Johnson uses a straight-line method to calculate book depreciation and pays tax at a rate of 40 percent. The equipment falls into the MACRS seven-year class. a. What annual depreciation expense will be reported on the income statement for the center? Question 7 0/1 pts Problem 5b. What annual depreciation expense will be reported for tax purposes in year 4Step by Step Solution
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