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Network Solutions, Inc. purchased $10 million worth of depreciable equipment this year. For financial statement purposes, the equipment is depreciable using the straight-line method over
Network Solutions, Inc. purchased $10 million worth of depreciable equipment this year. For financial statement purposes, the equipment is depreciable using the straight-line method over 10 years. For tax purposes, the property is eligible for 50% bonus depreciation with the remainder eligible for MACRS depreciation (at a 20% rate for year 1). By how much will tax depreciation exceed book depreciation with respect to this acquisition?
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