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Stone Age Concrete, Inc., purchased cement manufacturing equipment valued at $420,000 on March 14, 2014. The equipment is used for business 100% of the time.

Stone Age Concrete, Inc., purchased cement manufacturing equipment valued at $420,000 on March 14, 2014. The equipment is used for business 100% of the time. The firms accountant elected to take a $100,000 section 179 deduction. You have been asked to review the depreciation figures used for this equipment.

a. What is the basis for depreciation of this equipment?

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