The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 30%. Currently, sales are $690,000 per year and cost of sales are 60% of sales. The equipment is expected to last for 6 years with no residual value. The cash outflow expected at the beginning of the year is $425,400.

rev: 05_14_2018_QC_CS-127254

MC Qu. 38 What is the amount of...

What is the amount of depreciation deduction the company could expense annually assuming the straight - line depreciation method is used?