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Last year you purchased a machine for $1M. You want to sell it today for $0.8M and replace it with a new machine that costs

Last year you purchased a machine for $1M. You want to sell it today for $0.8M and replace it with a new machine that costs $1.2M. Both machines are classified as 20-year property (with depreciation rates of 5% and 9.5% in the first two years). The replacement will increase EBITDA by $100,0000. What is the incremental depreciation in the year after replacement? The tax rate is 35%. Group of answer choices $35,000 $60,000 -$35,000 -$64,000 -$10,000

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