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Question 10 10 points Save Answer Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost

I keep getting 2000 for the answer, and I have been informed that this is wrong. Please help!

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Answer #1

rate positively ..

cost of asset = 11000
Salvage value = 1000
Depreciable cost 10000
use full life of asset = 5
annual depreciation= 2000
Tax shield on depreciation = 600
2000*30%
Therefore answer = 600
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