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  3. a company purchases an asset that costs $90,000. t

A company purchases an asset that costs $90,000. This asset qualifies as 3-year property under...

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Accounting

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A company purchases an asset that costs $90,000. This asset qualifies as 3-year property under MACRS, The company uses an after-tax discount rate of 6% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Arzendix Table to determine the present value of the depreciation deductions for this firm over the specified four-year period. Refer to Exhibit 12.4. (Round depreciation expense to 2 decimal places.) Year Depreciation Deduction Tax Savings Present Values 1 2 3 4 Prey 1 of 5 : Next >

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