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Trust Engineering Company is considering the purchase of one The old machine was purchased 5 years ago at a considering explain in more details Trust Engineering Company is considering the


27. Trust Engineering Company is considering the purchase of one. The old machine was purchased 5 years ago at a considering
explain in more details 27. Trust Engineering Company is considering the purchase of one. The old machine was purchased 5 years ago at a considering the purchase of a new machine to replace an existing me was purchased 5 vears ago at a cost of $20.000, and it is being depreciated on a straight line basis to a zero salvage value over a 10-y me basis to a zero salvage value over a 10 vear life. The current market value of the old 0. The new machine, which costs $30,000, falls into the MACRS 5-year class and has an estimated life of 5 years. The change in depreciation expense that results project and will be considered in the capital hudanting analysis is The MACRS rates for 5-year class are Year 1-20%, Year 2-32%, Year 3-19%, Year4-12%, Year 5-11%, Year 6-6%. (A) $10,500 (B) $23,400 (C) $44,000 (D) $20,000 (E) $17,000

Feb 08 2020 View more View Less

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