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ABC Company, a calendar year taxpayer, purchased factory equipment for $800,000 and placed it in service...

ABC Company, a calendar year taxpayer, purchased factory equipment for $800,000 and placed it in service on Nov 1, 2018. It was the only purchase made in 2018.

a. Assuming the taxpayer does not use Sec. 179 or bonus depreciation, how much is their MACRS depreciation for 2018 and 2019?

b. What is the tax basis of the factory equipment at the end of 2019?

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