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The Darlington Equipment Company purchased a machine 5 years ago, prior to the TCJA, at a cost of $ 90,000. The machine had an expected
The Darlington Equipment Company purchased a machine 5 years ago, prior to the TCJA, at a cost of $ 90,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $9,000 per year. If the machine is not replaced, it can be sold for $5,000 at the end of its useful life. A new machine can be purchased for $170,000including installation costs. During its 5-year life, it will reduce cash operating expenses by 40,000 per yearSales are not expected to change. At the end of its useful life, the machine is estimated to be worthless. The new machine is eligible for 100% bonus depreciation at the
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