Question
Lokum A is a company operating in an imaginary country. This country uses the American MACRS system, but there are much more depreciation years than
Lokum A is a company operating in an imaginary country. This country uses the American MACRS system, but there are much more depreciation years than the American system. Lokum A will launch a new production line. The construction of this line will cost 365019 and at the end of 13 years the second hand (scrap) value will be 41998. The production line will be shipped to the factory at a cost of 97677,1 and will be installed for 44580,1. If the production line is to be depreciated using 13-year MACRS, what is the 6th year depreciation amount to be used for tax purposes? (Lokum A's MARR is 6%.)
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