Question: When a dairy farmer buys a cow he is allowed

When a dairy farmer buys a cow, he is allowed to deduct 50 percent of its price in the first year as a form of accelerated depreciation. How would you determine the appropriate depreciation schedule for a dairy cow? How does the accelerated depreciation described above affect the user cost of capital of a dairy cow?

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  • CreatedMarch 25, 2015
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