ANSWERS TO QUESTIONS

2nd full year [25% X ($212,000 – $53,000)] = $39,750. ... ($75,400 X .25 X .5) 2005’s depreciation is $16,494 ($75,400 – $9,425) X .25 2006’s depreciation is $12,370 ($75,400 – $25,919) X .25 2007’s depreciation is $ 9,278 ($75,400 – $38,289) X .25 $47,567 ... Depreciation and amortization charges do not increase cash flow from ... ................
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