Question
The AGM Company purchased a new 3-D printer at a cost of $ 256,000. AGM also paid $100 to have the printer delivered. It will
The AGM Company purchased a new 3-D printer at a cost of $ 256,000. AGM also paid $100 to have the printer delivered. It will also take $1500 for setup and installation. The printer will have an annual maintenance cost of $1200 per year and a warranty cost of $150 per year for next four years. The printer has an estimated useful life of 8 years. The salvage value of the printer at the end of useful life of 8 years will be $2500. The printer will be placed in service during the fourth quarter. Prepare a depreciation schedule for tax purposes showing the depreciation allowance and corresponding book value each year.
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