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Rayon owns equipment that it depreciates over 7 years using the straight-line method of depreciation. It assumes a salvage value of zero. The equipment cost
Rayon owns equipment that it depreciates over 7 years using the straight-line method of depreciation. It assumes a salvage value of zero. The equipment cost $154,000, and tax depreciation this year is $26,935. What is the amount of the book-tax adjustment for depreciation this year and is it favorable or unfavorable?
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