The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 35%. Currently, sales are $680,000 per year and cost of sales are 65% of sales. The equipment is expected to last for 4 years with no residual value. The cash outflow expected at the beginning of the year is $283,200.

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?

• $70,800
• $85,000
• $24,780
• $46,020