An owner of a mine has just purchased new mining equipment for $100,000 that she plans to use for 5 years before disposing of it. Answer the following two questions.
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The equipment's MACRS-ADS recovery period for tax purposes is:
OA Four years
B. Seven years
C. Five years
D. Ten years
E. Six years
The equipment's MACRS-ADS depreciation for the first year is equal to:
A. $7,145
B. $5,000
C. $10,000
OD. $14,290
E. $20,000