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Payton Delivery Service purchased a delivery truck for $28,200. The truck will have a useful life of six years and rero salvage value. For the
Payton Delivery Service purchased a delivery truck for $28,200. The truck will have a useful life of six years and rero salvage value. For the purposes of preparing financial statements, Payton is planning to use straight-line depreciation. For tax purposes, Payton follows MACRS. Depreciation expense using MACRS IS $5.650 in Year 1, 19.025 in Year 2, 55,400 in Year 3, $3,250 in each of Years 4 and 5, and $1,625 in Year 6. Required: 1. What is the difference between straight-line and MACRS depreciation expense for each of the six years? If an answer is zero, enter"0" Straight-Line MACRS Difference Year Depreciation Depreciation (SL-MACRS) Grand Total
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