Chapter 12 , Question 5 Purchase Price $21 , 400 Recovery Year 7 - Year Property ( % )| Depreciation on Dish Machine ( 5 ) 1 14. 29%6 IN 24.4990 17.49% 12.49%) 8.93%0 8.92%6 8.93% 8 4. 46% Total 100.00% eight years ?" a . Since the dish machine has a seven - year class life , why is it depreciated over Answer :` b . Why are the depreciation percentages more during the first four years than the last four years ?" Answer :" C . If Mahnoor were going to sell the dish machine for a salvage value instead of depreciating it fully , how would this change her depreciation calculations ? Answer :` J. If Mahnoor sold the dish machine before it was fully depreciation for less than her purchase price , would this represent a capital gain or a capital loss ? How would this affect her taxes ?" Answer : e . Assume that Mahnoor's operation is subject to a 30% tax on profits . What will be Mahnoor's tax savings over the eight- year period for which she will depreciate* the dish machine ? Answer : f . Based on the above question , what percentage of the dish machine's total purchase price could be considered to have been " paid for " by tax savings ? Explain your answer . Answer :&quot