Question
Required information Skip to question [The following information applies to the questions displayed below.] The Terme Corporation is contemplating the purchase of new equipment, which
Required information
Skip to question
[The following information applies to the questions displayed below.]
The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently, sales are $850,000 per year and cost of sales are 60% of sales. The equipment is expected to last for 6 years with no residual value. The cash outflow expected at the beginning of the year is $435,000.
rev: 05_14_2018_QC_CS-127254
What is the amount of depreciation deduction the company could expense annually assuming the straight - line depreciation method is used?
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