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Torry company uses the straight line method of depreciation on its financial statements to write off a piece of equipment that it purchased for $10,000.

Torry company uses the straight line method of depreciation on its financial statements to write off a piece of equipment that it purchased for $10,000. The asset has zero salvage value and a useful life of 4 years. On the tax return it writes off the asset over 2 years with zero salvage value. The company is taxed at 30%. What is the tax base of the asset as of the end of Year 2?

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