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Question - Starling Co. is considering disposing of a machine with a book value of $22,800 and estimated remaining life of five years. The old machine can be sold for $5,500. A new high-speed machine can be purchased at a cost of 67,700. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,700 to $19,000 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is
a. increase of $56,810
b. decrease of $56,810
c. increase of $43,700
d. decrease of $43,700
Purchases Budget Leimersheim GmbH has adopted the following policies regarding merchandise purchases and inventory.
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Presuming all other dependency tests are met, on a separate return, how many personal and dependency exemptions may Myrna claim?
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