Question: Question 28 A machine is purchased for a first cost (unadjusted basis) of $300,000. The salvage value of the machine is $30,000 after four years

Question 28 A machine is purchased for a first cost (unadjusted

Question 28 A machine is purchased for a first cost (unadjusted basis) of $300,000. The salvage value of the machine is $30,000 after four years of use. The operating expenses for the machine average $45,000 per year and the anticipated income is $80,000 per year. The machine qualifies as a 3-year MACRS property. The itr and depreciation recapture rate is 25%. The machine qualifies for a 100% Section 179 Expense Deduction. However, the basis must be reduced by the amount of the Section 179 Expense Deduction. What is the CFAT at the end of the first year? $26,250 $48,750 $75,850 $101,250

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