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The machinery & equipment are depreciated over a five-year useful life for both GAAP and tax purposes. For GAAP, a straight-line depreciation method is utilized,

The machinery & equipment are depreciated over a five-year useful life for both GAAP and tax purposes. For GAAP, a straight-line depreciation method is utilized, whereas tax allows bonus depreciation and MACRS depreciation. Assume the assets were placed in service on January 1 of the calendar year, are subject to 50% bonus depreciation (rather than 100%), and 20% MACRS depreciation in the current period

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