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A printing company purchases a new printer for $15,000 with a 5-year useful life. Their accountant...

A printing company purchases a new printer for $15,000 with a 5-year useful life. Their accountant informs them that they must use the Modified Accelerated Cost Recovery System (MACRS) to calculate their depreciation on this piece of equipment.

a) What is the allowable depreciation they can take in year three for the press?

b) What is the book value of the press after year three?

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