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A virtual mold apparatus for producing dental crowns permits an in?nite number of shapes to be custom constructed based upon mold imprints taken by dentists. It costs $28,500 and is purchased at the beginning of the tax year. It is expected to last 9 years with no salvage value at that time. The dental supplier depreciates assets using MACRS but values assets of the company using straight-line depreciation. Determine the depreciation allowance and the unrecovered investment for each year using each of the following:
a. For tax purposes (be sure to identify the MACRS-GDS property class)
b. For company valuation purposes
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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