1. Max Hardware recently purchased a new machine for $150,000. It cost $10,000 to ship the machine to the facility, and it cost another $5,000 to get it installed. Using the MACRS 3 years class, what is the depreciation for the 1st year?
2. What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Please be detailed and be specific with your answer.