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Please Solve the following problems In 2015, Firm A paid $50,000 cash to purchase a tangible business asset. In 2015 and 2016, it deducted $3,140
Please Solve the following problems
In 2015, Firm A paid $50,000 cash to purchase a tangible business asset. In 2015 and 2016, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm As marginal tax rate in both years was 35 percent. a. Compute Firm As net cash low attributable to the asset purchase in each year. b. Compute Firm As adjusted basis in the asset at the end of each year.
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