A company is looking to invest in new machinery. The cost of the machinery, including shipping and installation costs, is $34.75 million. The company has estimated that revenues will increase to $38.9 million in each of the next three years if the machinery is purchased. Costs (both variable and fixed) are also expected to increase to $10.2 million in each of the next three years. The company uses a standard straight-line depreciation method. In particular, the company will straight-line depreciate the machinery to $7.8 million over the three year life of the project. If the marginal tax rate is 39%, what will the differential cash flows be in each of the next three years

Need with an adjusting journal entrycmc records depreciation and amortization expense annually. they do not use an accumulated amortization account. (i.e. amortization expense is recorded with a debit to amort. exp and a credit to the patent.) annual depreciation rates are 7% for buildings/equipment/furniture, no salvage. (round to the nearest whole dollar.) annual amortization rates are 10% of original cost, straight-line method, no salvage. cmc owns two patents: patent #fj101 and patent #cq510. patent #cq510 was acquired on october 1, 2016. patent #fj101 was acquired on april 1, 2018 for $119,000. the last time depreciation & amortization were recorded was december 31, 2017.before adjustment: land: 348791equpment and furniture: 332989building: 876418patents 217000