A metal fabrication company is buying a CNC machine for $600,000. After 20 years of use, the machine should have a salvage value of $35,000. (a) Under 100% bonus depreciation, what depreciation can be claimed in year 1? (b) Under 100% bonus depreciation, what depreciation can be claimed in year 2?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.