33. In August, Jimbo Corporation (a calendar-year corporation) purchased used computers for $655,000. These are the only

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33. In August, Jimbo Corporation (a calendar-year corporation) purchased used computers for $655,000. These are the only assets Jimbo purchased this year. Jimbo Corporation is in the 34 percent marginal tax bracket and uses a discount rate of 6 percent for evaluation. Assuming that Jimbo makes any necessary elections to maximize the depreciation deduction, what is the after-tax cost of the computers if they are placed in service in

a. 2010

b. 2011

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Taxation For Decision Makers

ISBN: 9781118091555

2012 Edition

Authors: Shirley Dennis Escoffier

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