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A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4,700 to install.
a) If the machine would have a salvage value of $6,600 at EOY 20, how much could Ajax charge annually to depreciation of this equipment? Ajax uses straight-line depreciation.
b) What is the book value of the machine at EOY 3?
c) Ajax Manufacturing earns a net profit before tax (also called a taxable income).of $28,800,000. How much tax would Ajax owe for this year?
Please solve each part by hand, NO Microsoft Excel. Show correct formulas used to solve each part step by step. Please show all work leading up to the correct answer for each part.
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