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Assumptions:. Purchase:. $1,000,000. Put in Use . 9/1/2009. Client Tax Rate. 35%. Standard Depreciation under MACRS. Acquisition year - MACRS. 20%. Depr 2009. $200,000. Under American Recovery & Reinvestment Act (ARRA). Depr Bonus under ARRA. 40%. Acquisition year - MACRS. 20%.

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accelerated depreciation benefits hardware

Assumptions:

Purchase:

$1,000,000

Put in Use

9/1/2009

Client Tax Rate

35%

Standard Depreciation under MACRS

Acquisition year - MACRS

20%

Depr 2009

$200,000

Under American Recovery & Reinvestment Act (ARRA)

Depr Bonus under ARRA

40%

Acquisition year - MACRS

20%

Depr 2009

$600,000

ARRA Depr 2009

$600,000

Standard Depr 2009

$200,000

Additional Depr

$400,000

x Tax Rate

x 35%

Tax Benefit

$140,000

Accelerated Depreciation Benefits - Hardware

Accelerated Depreciation

Does not impact Accounting Books

For Tax Purposes Only

accelerated depreciation benefits software

Assumptions:

Purchase:

$1,000,000

Put in Use

9/1/2009

Client Tax Rate

35%

Standard Depreciation - 36 month straight line

Prorated for calendar year

4/36

Depr 2009

$111,111

11.1% of the purchase

Depreciation Under American Recovery & Reinvestment Act (ARRA)

Depr Bonus under ARRA

50%

Proration of remaining 50%

4/36

(4/36 * 50% = 5.5555%)

Depr 2009

$555,556

55.5% of the purchase

ARRA Depr 2009

$555,556

Standard Depr 2009

$111,111

Additional Depr

$444,444

x Tax Rate

x 35%

Tax Benefit

$155,556

Accelerated Depreciation Benefits -Software

Accelerated Depreciation

Does not impact Accounting Books

For Tax Purposes Only