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DECISION ABOUT BORROWING/ FOREGOING PURCHASE DISCOUNT

I don't understand Schedule C and Schedule D on the attached problem. I am not exactly sure which numbers to use.

Also, could you help me on Requirement 2?

(See attached file for full problem description)

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Question wise answer is as follows:

Q1 In this schedule C Depreciation will not be included because there is no cash out go, similarly in Schedule D Depreciation is not ...

$2.19