Muddy fields earthmoving can purchase a bulldozer for 30000, Business Economics

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Muddy fields earthmoving can purchase a bulldozer for 30000

Muddy Fields Earthmoving can purchase a bulldozer for $30,000. After 7 years of use, the bulldozer should have a salvage value of $5000.

(a) Under MACRS, what depreciation is claimed in year 3?

(b) Under the straight-line (pre-1981) method, what depreciation is claimed in year 3?

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