A robot for the manufacture of motor vehicles is purchased for $420,000. It has a class life of 10 years and is MACRS-GDS 7-year property. In evaluating the impact of this equipment on company finances, it is desired to compare the effect of using (1) no bonus depreciation, (2) 50% bonus depreciation, and (3) 100% bonus depreciation. Determine each of these three for depreciation taken in year 1. a. $60,018; $240,009; $420,000 b. $42,000; $210,000; $420,000.
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