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These answers were incorrect Trenton Fabrication Company purchased industrial tools costing $200,000, which fall in the 3-year property class under MACRS Use Appendix A and
These answers were incorrect
Trenton Fabrication Company purchased industrial tools costing $200,000, which fall in the 3-year property class under MACRS Use Appendix A and Exhibit 16-9 for your reference. (Use appropriate factor(s) from the tables provided.). (Round your final answers to the nearest dollar amount.) 2. Calculate the present value of the depreciation tax shield under each depreciation method listed in part (1). Trenton Fabrication Company's after-tax hurdle rate is 10 percent, and the firm's tax rate is 30 percent. Present Value of Depreciation Tax Shield 49,934 Under MACRS Accelerated depreciation Under MACRS Straight-line depreciation $ 48,298Step by Step Solution
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