list-Besic calculation Cushing Corporation is considering the purchase of a new grading machine to place the exting one. The edding machine was purchased 4 years ago at an instated cost of 120.900 was being depreciated under MACRS using a 5-year recovery period (ee table for the applicable depreciation percentages) The ting machine is expected to have a usable Me fata mareyers. The new machine $35.300 and $1,300 in nation costs will be depreciated using a 5-year recovery period under MACRS The existing machine can cuminty be sold be 1253 The med 40% tax Calculate the inal investment associated with the proposed purchase of a new grading machin without besting any removal a deanup c ta table ounded Depreciation Percentages by Recovery Year Using MACRS for rst Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 6% 9 6% 10 11 4% Totals 100% 100% 100% 100% These percentages have been rounded to the nearest whole percent to simplify calculations while taining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual rounded percentages or directly apply double-declining balance (200%) depreciation using the half-year nvention. Initial investment-Basic calculation Cushing Corporeon is considering the purchase of a new grading machine to place the existing one Thesisting machine was pushed 4 years ago at an end of $20.900. was being depreciated under MACRS using Syear recovery period (lee table for the applicable depreciation percentages) The siding machine is expected to teve a onable the of at least 6 more years. The new machine 335.300 and reqs $5.300 is instalion costs will be depreciated uning a 5-year recovery period under MACRS The assing machine can ounardly be sold for $25.300 without curing any semeal or deanup.c The subject 3 40% tax rate Calculate the intial investment associated with the proposed purchase of a new grading machine the The wound) First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 15% 19% 18% 14% 4 7% 12% 12% 12% 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 6% 6% 10 4% 11 Totals 100% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention