A manufacturer of aerospace products purchased three


Question: A manufacturer of aerospace products purchased three flexible assembly cells for $500,000 each. Delivery and insurance charges were $35,000, and installation of the cells cost another $50,000.

a. Determine the cost basis of the three cells.

b. What is the class life of the cells?

c. What is the MACRS depreciation in year five?

d. If the cells are sold to another company for $120,000 each at the end of year six, how much is the recaptured depreciation?

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Engineering Mathematics: A manufacturer of aerospace products purchased three
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