
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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To keep track of customers' behavior, a grocery store chain invests $75,000 in a CRM system. This new system is treated as a seven-year MARCS property for tax purposes.
The system's life-span is six years, and at the end of the six years, the expected salvage value is $5,500.
(i) What is the
(ii) What is the depreciation allowance for the sixth year of use?
A) (i) $9,367.5, (ii)$3,345.0
B) (i) $9,367.5, (ii)$6,690.0
C) (i) $8,680.6, (ii)$3,099.7
D) Answers A, B and C are not correct
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