Information about a project Wagner Company is considering is as follows:
The property is considered 5-year property for tax purposes.The company plans to use MACRS and dispose of the property at the end of the sixth year; no salvage value is expected.Assume all cash flows occur at the end of the year.Round amounts to dollars.
The tax savings from depreciation in Year 2 would be
A) $48,000.
B) $64,800.
C) $76,800.
D) $82,400.
Correct Answer:
Verified
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