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Trans-Atlantic Technology, Inc. is considering the purchase of a main-frame computer that has a cost of $4,850,000 . The computer is expected to have a
Trans-Atlantic Technology, Inc. is considering the purchase of a main-frame computer that has a cost of $4,850,000. The computer is expected to have a five-year useful life; after this time, the computer will be obsolete. However, it can be sold on December 31, Year 5, for a salvage value of $300,000 as some of the computers parts will still be usable. Given this information, calculate the Annual Depreciation Expense for this computer.
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