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Max Wayco, the business manager for Essey Industries, must select a new computer system for his assistant. Rental of Model A, which is similar to the model now being used, is $2,200 per year. Model B is a deluxe system that rents for $2,900 per year and will require a new desk for the assistant. The annual desk rental charge is $750. The assistant's salary of $1,200 per month will not change. If Model B is rented, $280 in annual software training costs will be incurred. Model B has greater capacity and is expected to save $1,550 per year in part-time wages. Upkeep and operating costs will not differ between the two models. Need help computing the computer and software rental for A and B and the favorable difference.
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Comment on the following items relative to tax planning strategies of a fiduciary entity.
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Finch Corp. sells portable air filtration systems by means of internet and direct mail orders. Most of the components are purchased from foreign suppliers at a cost of $1,600-What is Finch's DPGR per unit? It's QPAI? How could this result have been..
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