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Jain's Pharmaceuticals Is Installing New Lab Equipment at a Cost

Question 87

Multiple Choice

Jain's Pharmaceuticals is installing new lab equipment at a cost of $5 million with an economic life of 5 years. Jain's marginal tax rate is 35%. What is the difference in depreciation between straight line depreciation and MACRS depreciation in the second year.


A) $0.6 million
B) $1 million
C) $1.6 million
D) $1.75 million

Correct Answer:

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