Question: Use the following table for the next THREE problems. Your company just bought a new distillation unit for $130,000 to be used in R&D. Such

Use the following table for the next THREE problems. Your company just bought a new distillation unit for $130,000 to be used in R\&D. Such equipment has a 3-year MACRS classification. What is the book value of the distillation unit at the end of year? Your company just purchased a new computer system for $130,000. Computers have a 5-year MACRS classification. What is the depreciation allowance for this system in Year 2? Your company just bought some new equipment for its manufacturing plant. The equipment cost $130,000. Industrial equipment has an MACRS classification of 7 years. If the equipment will be sold in 2 years for $85,000, what is the after-tax cash flow (salvage value) from the sale? The corporate tax rate is 34%

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