What is the firm depreciation expense in the first year

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Reference no: EM132656346

Problem 1: A firm is considering the purchase of an asset that costs $140,000, requires $10,000 in installation cost, and has a recovery period of 5 years. It will be the firm's only asset. Using the MACRS depreciation. what is the firm's depreciation expense in the first year of the recovery period?

A. $28,000

B. $49,500

C. $15,000

D. $30,000

Reference no: EM132656346

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