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Q2) Girupe Grande Maquinaria, a diversified manufachuring corporation based in Mevico, maintains parallel records for depreciable assets in its European operations in Germany. This is

image text in transcribedimage text in transcribed Q2) Girupe Grande Maquinaria, a diversified manufachuring corporation based in Mevico, maintains parallel records for depreciable assets in its European operations in Germany. This is common for multinational corporation. One set is for corporate uie that reflects the estimated useful bife of assets. The second set is for foreign government purposes, such ar depreciabion and taxes. The company juit purchased an auset for $90,000 with an estimaind uneful life of 9 years; however, a shorter recovery period of 5 years is allowed by German tax law. Demonstrate the tax advantage for the stmaller n if nef operating income (NOI) is $30,000 per year, an effective tax rate of 35% applies, invested money is returning 5% per year after taxes, and classical SL, depreciation is allowed. Neglect the effect of any salvage value

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