Chapter 8   Depreciation, Cost   Recovery, Amortization,   and Depletion   Individual Income Taxes© 2013 Cengage Learning....
The Big Picture (slide 1 of 2)• Dr. Cliff Payne purchases and places in service in his dental  practice the following fixe...
The Big Picture (slide 2 of 2)• In addition, during the current year, Dr. Payne  purchased another personal residence for ...
Cost Recovery• Recovery of the cost of business or income-  producing assets is through:  – Cost recovery or depreciation:...
Nature of Property• Property includes both realty (real property) and  personalty (personal property)   – Realty generally...
General Considerations                              (slide 1 of 3)• Basis in an asset is reduced by the amount of cost  re...
General Considerations                        (slide 2 of 3)• If personal use assets are converted to business  or income-...
General Considerations                      (slide 3 of 3)• MACRS applies to:  – Assets used in a trade or business or for...
The Big Picture - Example 3    Cost Recovery Basis for Personal Use Assets            Converted to Business Use•   Return ...
MACRS-Personalty• MACRS characteristics:                          MACRS Personalty           .  Statutory lives:     3, 5,...
Half-Year Convention• General rule for personalty• Assets treated as if placed in service (or  disposed of) in the middle ...
Example: Half-Year Convention• Purchased and placed an asset in service on  March 15 (Tax year end is December 31)  – Trea...
Additional First-Year Depreciation                                 (slide 1 of 2)• 50% additional first-year depreciation ...
Additional First-Year Depreciation                      (slide 2 of 2)• Additional first-year depreciation allows an  addi...
Example: Additional           First-Year DepreciationMaple Company acquires a 5-year class asset onApril 25, 2012, for $20...
The Big Picture - Example 8MACRS With Additional First-Year         Depreciation                                   16
Mid-Quarter Convention• Applies when more than 40% of personalty is  placed in service during last quarter of year• Assets...
Example: Mid-Quarter Convention• Business with 12/31 year end purchased and placed in  service the following used 5-year c...
The Big Picture - Example 11  Mid-Quarter Convention                               19
MACRS-Realty                                 (slide 1 of 2)• MACRS characteristics:                          MACRS Realty ...
MACRS-Realty                       (slide 2 of 2)• Mid-month Convention  – Property placed in service at any time during a...
Optional Straight-line Election• May elect straight-line rather than accelerated  depreciation on personalty placed in ser...
Farm Property                        (slide 1 of 2)• Generally, for farm assets use:  – MACRS 150% declining-balance metho...
Farm Property   (slide 2 of 2)                    24
Leasehold Improvement Property                           (slide 1 of 3)• If lessor is owner of leasehold improvement prope...
Leasehold Improvement Property                        (slide 2 of 3)• If lessee is owner of leasehold improvement  propert...
Leasehold Improvement Property                       (slide 3 of 3)• Tax Relief Act of 2010 allows for 50%  additional fir...
Election to Expense Assets           -Section 179 (slide 1 of 5)• General rules  – Can elect to immediately expense up to ...
Election to Expense Assets           -Section 179 (slide 2 of 5)• Section 179 general rules  – Amount expensed reduces dep...
Election to Expense Assets           -Section 179 (slide 3 of 5)• Annual limitations:  – Expense limitation ($139,000 for ...
Election to Expense Assets            -Section 179 (slide 4 of 5)• Annual limitations:   – Election to expense cannot exce...
Election to Expense Assets             -Section 179 (slide 5 of 5)Example: Taxpayer buys 5-year property for$164,000 on Au...
Listed Property (slide 1 of 4)• There can be substantial limits on cost  recovery of assets considered listed property• Li...
Listed Property (slide 2 of 4)• To be considered as predominantly used for  business, business use must exceed 50%     • U...
Listed Property (slide 3 of 4)• To be considered as predominantly used for  business (cont’d)     • If 50% test is met, th...
Listed Property (slide 4 of 4)• If asset is not used predominantly for business  i.e., business use does not exceed 50%  –...
Passenger Auto Cost               Recovery Limits (slide 1 of 7)For autos placed in service in 2011, cost recovery limits ...
Passenger Auto Cost         Recovery Limits (slide 2 of 7)• Limits are for 100% business use  – Must reduce limits by perc...
Passenger Auto Cost         Recovery Limits (slide 3 of 7)Example: Taxpayer acquired an auto in 2011for $30,000 and used i...
Passenger Auto Cost          Recovery Limits (slide 4 of 7)• Limit on § 179 deduction  – For certain vehicles not subject ...
Passenger Auto Cost            Recovery Limits (slide 5 of 7)• Listed property that fails the >50% business usage  test in...
Passenger Auto Cost          Recovery Limits (slide 6 of 7)• Change from predominantly business use  – If the business use...
Passenger Auto Cost         Recovery Limits (slide 7 of 7)• Leased autos subject to inclusion amount rule  – Using IRS tab...
Alternative Depreciation         System (ADS) (slide 1 of 2)• ADS is an alternative depreciation system that  is used in c...
Alternative Depreciation         System (ADS) (slide 2 of 2)• Generally, use straight-line recovery without  regard to sal...
Amortization (slide 1 of 2)• Can claim amortization deduction on § 197  intangibles  – Use straight-line recovery over 15 ...
Amortization (slide 2 of 2)• Startup expenditures are also partially amortizable  under § 195   – Treatment is available o...
Depletion                      (slide 1 of 4)• Two methods of natural resource depletion  – Cost: determined by using the ...
Depletion                         (slide 2 of 4)• Cost depletion  – Depletion is computed on a per unit basis  – Per unit ...
Depletion                      (slide 3 of 4)• Percentage depletion  – Depletion is computed by using the statutory    per...
Depletion                         (slide 4 of 4)• Percentage depletion  – Percentage depletion cannot exceed 50% of the   ...
Intangible Drilling Costs                   (IDC)• Intangible drilling costs include  – Costs for making the property read...
The Big Picture - Example 47                              Tax Planning•   Return to the facts of The Big Picture p. 8-1.• ...
The Big Picture - Example 47                            Tax Planning•   The deductible loss from the rental property is co...
Refocus On The Big Picture• Evidently, Dr. Payne’s accounting system uses MACRS  because $91,298 of depreciation is the co...
If you have any comments or suggestions concerning this                    PowerPoint Presentation for South-Western Feder...
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P pt ch 08

  1. 1. Chapter 8 Depreciation, Cost Recovery, Amortization, and Depletion Individual Income Taxes© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
  2. 2. The Big Picture (slide 1 of 2)• Dr. Cliff Payne purchases and places in service in his dental practice the following fixed assets during the current year: Office furniture and fixtures $ 70,000 Computers and peripheral equipment 67,085 Dental equipment 475,000• Using his financial reporting system, he concludes that the depreciation expense on Schedule C of Form 1040 is $91,298. Office furniture and fixtures ($70,000 X 14.29%) $10,003 Computers and peripheral equipment ($67,085 X 20%) 13,417 Dental equipment ($475,000 X 14.29%) 67,878 $91,298 2
  3. 3. The Big Picture (slide 2 of 2)• In addition, during the current year, Dr. Payne purchased another personal residence for $300,000 – He converts his original residence to rental property.• He also purchased a condo for $170,000 near his office that he is going to rent.• Has Dr. Payne correctly calculated the depreciation expense for his dental practice? – Will he be able to deduct any depreciation expense for his rental properties?• Read the chapter and formulate your response. 3
  4. 4. Cost Recovery• Recovery of the cost of business or income- producing assets is through: – Cost recovery or depreciation: tangible assets – Amortization: intangible assets – Depletion: natural resources 4
  5. 5. Nature of Property• Property includes both realty (real property) and personalty (personal property) – Realty generally includes land and buildings permanently affixed to the land – Personalty is defined as any asset that is not realty • Personalty includes furniture, machinery, equipment, and many other types of assets• Personalty (or personal property) should not be confused with personal use property – Personal use property is any property (realty or personalty) that is held for personal use rather than for use in a trade or business or an income-producing activity • Write-offs are not allowed for personal use assets 5
  6. 6. General Considerations (slide 1 of 3)• Basis in an asset is reduced by the amount of cost recovery that is allowed and by not less than the allowable amount – Allowed cost recovery is cost recovery actually taken – Allowable cost recovery is amount that could have been taken under the applicable cost recovery method• If no cost recovery is claimed on property – The basis of the property must still be reduced by the amount that should have been deducted • i.e., The allowable cost recovery 6
  7. 7. General Considerations (slide 2 of 3)• If personal use assets are converted to business or income-producing use – Basis for cost recovery and for loss is lower of • Adjusted basis or • Fair market value at time property was converted – Losses that occurred prior to conversion can not be recognized for tax purposes through cost recovery 7
  8. 8. General Considerations (slide 3 of 3)• MACRS applies to: – Assets used in a trade or business or for the production of income – Assets subject to wear and tear, obsolescence, etc. – Assets that have a determinable useful life or decline in value on a predictable basis – Assets that are tangible personalty or realty 8
  9. 9. The Big Picture - Example 3 Cost Recovery Basis for Personal Use Assets Converted to Business Use• Return to the facts of The Big Picture p. 8-1 .• Five years ago Dr. Payne purchased his personal residence for $250,000. – This year Dr. Payne found a larger home that he acquired for his personal residence. – Unfortunately he cannot sell his original residence and recover his purchase price of $250,000. • The residence was appraised at $180,000.• Instead of continuing to try to sell the original residence, Dr. Payne converted it to rental property. – The basis for cost recovery of the rental property is $180,000 because the fair market value is less than the adjusted basis. – The $70,000 decline in value is deemed to be personal (since it occurred while the property was held for personal use by Dr. Payne) and therefore nondeductible. 9
  10. 10. MACRS-Personalty• MACRS characteristics: MACRS Personalty . Statutory lives: 3, 5, 7, 10 yrs 15, 20 yrs Method: 200% DB 150% DB Convention: Half Yr or Mid-Quarter DB = declining balance with switch to straight-line Straight-line depreciation may be elected 10
  11. 11. Half-Year Convention• General rule for personalty• Assets treated as if placed in service (or disposed of) in the middle of taxable year regardless of when actually placed in service (or disposed of) 11
  12. 12. Example: Half-Year Convention• Purchased and placed an asset in service on March 15 (Tax year end is December 31) – Treated as placed in service June 30 – Six months cost recovery in year 1 (and year disposed of, if within recovery period) 12
  13. 13. Additional First-Year Depreciation (slide 1 of 2)• 50% additional first-year depreciation has been allowed for several years – The Small Business Jobs Act of 2010 extended additional first-year depreciation for one more year • Effective for qualified property acquired and placed in service before January 1, 2011• Most recently, the Tax Relief Act of 2010 extended additional first-year depreciation for 2011 – Increases the percentage from 50% to 100% – Effective for qualified property placed in service after Sept. 8, 2010 and before Jan. 1, 2012• The Act also extends additional first-year depreciation for 2012, but at the 50% rate – Effective for qualified property placed in service after Dec. 31, 2011 and before Jan. 1, 2013 13
  14. 14. Additional First-Year Depreciation (slide 2 of 2)• Additional first-year depreciation allows an additional percentage (50% or 100%) of cost recovery in year asset is placed in service• Qualified property includes most types of new property other than buildings – Property that is used but new to the taxpayer does not qualify 14
  15. 15. Example: Additional First-Year DepreciationMaple Company acquires a 5-year class asset onApril 25, 2012, for $20,000. Maple’s cost recoverydeduction for 2012 is computed as follows:50% additional first-year depreciation ($20,000 X .50) $10,000MACRS cost recovery [($20,000 - $10,000) X .20 (Table 8.1)] 2,000Total cost recovery $12,000 15
  16. 16. The Big Picture - Example 8MACRS With Additional First-Year Depreciation 16
  17. 17. Mid-Quarter Convention• Applies when more than 40% of personalty is placed in service during last quarter of year• Assets treated as if placed into service (or disposed of) in the middle of the quarter in which they were actually placed in service (or disposed of) 17
  18. 18. Example: Mid-Quarter Convention• Business with 12/31 year end purchased and placed in service the following used 5-year class assets: • Asset 1: on 3/28 for $50,000, and • Asset 2: on 12/28 for $100,000• More than 40% placed in service in last quarter; therefore, mid-quarter convention used: • Asset 1: $50,000 × (.20 × 200% × 10.5/12) = $17,500, or $50,000 × 35% (Table 8.2) = $17,500 • Asset 2: $100,000 × (.20 × 200% × 1.5/12) = $5,000, or $100,000 × .05 (Table 8.2) = $5,000 18
  19. 19. The Big Picture - Example 11 Mid-Quarter Convention 19
  20. 20. MACRS-Realty (slide 1 of 2)• MACRS characteristics: MACRS Realty Residential Rental Nonresid. RealtyStatutory lives: 27.5 yrs 31.5 yrs or 39 yrsMethod: Straight-lineConvention: Mid-month• Residential rental real estate – Includes property where 80% or more of gross rental revenues are from nontransient dwelling units – e.g., Apartment building 20
  21. 21. MACRS-Realty (slide 2 of 2)• Mid-month Convention – Property placed in service at any time during a month is treated as if it was placed in service in the middle of the month – Example: Business building placed in service April 25 is treated as placed in service April 15 21
  22. 22. Optional Straight-line Election• May elect straight-line rather than accelerated depreciation on personalty placed in service during year – Use the class life of the asset for the recovery period – Use half-year or mid-quarter convention as applicable – Election is made annually by class of property 22
  23. 23. Farm Property (slide 1 of 2)• Generally, for farm assets use: – MACRS 150% declining-balance method for personalty • MACRS straight-line method is required for any tree or vine bearing fruits or nuts – Straight line method over the normal periods (27.5 years and 39 years) for real property – If the election is made to not have the uniform capitalization rules apply, alternative depreciation system (ADS) straight-line method must be used 23
  24. 24. Farm Property (slide 2 of 2) 24
  25. 25. Leasehold Improvement Property (slide 1 of 3)• If lessor is owner of leasehold improvement property, depreciation is calculated as follows: – Real Property – Use straight-line method over 27.5 or 39 year statutory recovery periods – Tangible personal property – Use the shorter MACRS lives and accelerated methods• When these improvements are disposed of or abandoned by the lessor due to lease termination – Property is treated as disposed of by the lessor – A loss can be taken for the unrecovered basis 25
  26. 26. Leasehold Improvement Property (slide 2 of 3)• If lessee is owner of leasehold improvement property – Costs of leasehold improvements are recovered in accordance with the general cost recovery rules • Cost recovery period is determined without regard to the lease term – Any unrecovered basis in the leasehold improvement property not retained by the lessee is deducted in the year the lease is terminated 26
  27. 27. Leasehold Improvement Property (slide 3 of 3)• Tax Relief Act of 2010 allows for 50% additional first-year depreciation for qualified leasehold improvements – A qualified leasehold improvement is an improvement to an interior portion of a nonresidential building by the lessee or lessor, and – Placed in service more than 3 years after date building was first placed in service. 27
  28. 28. Election to Expense Assets -Section 179 (slide 1 of 5)• General rules – Can elect to immediately expense up to $139,000 of business tangible personalty placed in service in 2012 – Cannot use § 179 for most realty or production of income property 28
  29. 29. Election to Expense Assets -Section 179 (slide 2 of 5)• Section 179 general rules – Amount expensed reduces depreciable basis – Any elected § 179 expense is taken before additional first-year depreciation is computed • The base for calculating the standard MACRS deduction is net of the § 179 expense and the additional first-year depreciation (50% in 2012). 29
  30. 30. Election to Expense Assets -Section 179 (slide 3 of 5)• Annual limitations: – Expense limitation ($139,000 for 2012) is reduced by amount of § 179 property placed in service during year that exceeds $560,000• Example: In 2012, taxpayer placed in service $575,000 of § 179 property. – The § 179 expense limit is reduced to $124,000 • [$139,000 – ($575,000 – $560,000)] 30
  31. 31. Election to Expense Assets -Section 179 (slide 4 of 5)• Annual limitations: – Election to expense cannot exceed taxable income (before § 179) of taxpayer’s trades or businesses • Any amount expensed under § 179 over taxable income limitation may be carried over to subsequent year(s) • Amount carried over still reduces basis currently – The § 179 amount eligible for expensing in a carryforward year is limited to the lesser of • The statutory dollar amount ($139,000 in 2012) reduced by the cost of § 179 property placed in service in excess of $560,000 (in 2012) in the carryforward year, or • The business income limitation in the carryforward year. 31
  32. 32. Election to Expense Assets -Section 179 (slide 5 of 5)Example: Taxpayer buys 5-year property for$164,000 on August 15, 2012 and elects immediateexpensing of the maximum amount. The totaldeduction for the year is calculated as follows:§ 179 expense $139,000Standard MACRS calculation [($164,000 - $139,000) X .20] 5,000Total cost recovery allowed in 2012 $144,000Assumes election is made to not take additional first year depreciation. 32
  33. 33. Listed Property (slide 1 of 4)• There can be substantial limits on cost recovery of assets considered listed property• Listed property includes the following: – Passenger automobile – Other property used as a means of transportation – Property used for entertainment, recreation, or amusement – Computer or peripheral equipment – Cellular telephone 33
  34. 34. Listed Property (slide 2 of 4)• To be considered as predominantly used for business, business use must exceed 50% • Use of asset for production of income is not considered in this 50% test • However, both business and production of income use percentages are used to compute cost recovery 34
  35. 35. Listed Property (slide 3 of 4)• To be considered as predominantly used for business (cont’d) • If 50% test is met, then allowed to use statutory percentage method of cost recovery with some limitations 35
  36. 36. Listed Property (slide 4 of 4)• If asset is not used predominantly for business i.e., business use does not exceed 50% – Must use straight-line method – If business use falls to 50% or lower after year property is placed in service, must recapture excess cost recovery 36
  37. 37. Passenger Auto Cost Recovery Limits (slide 1 of 7)For autos placed in service in 2011, cost recovery limits are: Year Recovery Limitation 1 $3,060 2 4,900 3 2,950Succeeding years until the cost is recovered 1,775• If a passenger auto used predominantly for business qualifies for additional first-year depreciation – First-year recovery limitation is increased by $8,000 • Limit increases from $3,060 to $11,060 ($3,060 + $8,000). 37
  38. 38. Passenger Auto Cost Recovery Limits (slide 2 of 7)• Limits are for 100% business use – Must reduce limits by percentage of personal use• Limit in the first year includes any amount the taxpayer elects to expense under § 179 38
  39. 39. Passenger Auto Cost Recovery Limits (slide 3 of 7)Example: Taxpayer acquired an auto in 2011for $30,000 and used it 80% for business2011 cost recovery allowance:($30,000 × 20%) × 80% $4,800But deduction is limited to $3,060× Business use % × 80%Cost recovery allowance $2,448 39
  40. 40. Passenger Auto Cost Recovery Limits (slide 4 of 7)• Limit on § 179 deduction – For certain vehicles not subject to the statutory dollar limits imposed on passenger automobiles the § 179 deduction is limited to $25,000 • The limit applies to sport utility vehicles with an unloaded GVW rating of more than 6,000 pounds and not more than 14,000 pounds 40
  41. 41. Passenger Auto Cost Recovery Limits (slide 5 of 7)• Listed property that fails the >50% business usage test in year property is placed in service must be recovered using the straight-line method – Such property does not qualify for additional first-year depreciation• If the >50% business usage test is failed in a year after the property is placed in service, straight-line method must be used for remainder of property’s life – Cost recovery of passenger auto under straight-line listed property rule still subject to annual limits 41
  42. 42. Passenger Auto Cost Recovery Limits (slide 6 of 7)• Change from predominantly business use – If the business use percentage falls to 50% or lower after the year the property is placed in service, the property is subject to cost recovery recapture – The amount recaptured as ordinary income is the excess cost recovery • Excess cost recovery is the excess of the cost recovery deductions taken in prior years using the statutory percentage method over the amount that would have been allowed if the straight-line method had been used 42
  43. 43. Passenger Auto Cost Recovery Limits (slide 7 of 7)• Leased autos subject to inclusion amount rule – Using IRS tables, taxpayer has gross income equal to each lease year’s inclusion amount – Purpose is to prevent avoidance of cost recovery dollar limits applicable to purchased autos by leasing autos 43
  44. 44. Alternative Depreciation System (ADS) (slide 1 of 2)• ADS is an alternative depreciation system that is used in calculating depreciation for: – Alternative minimum tax (AMT) – Assets used predominantly outside the U.S. – Property owned by the taxpayer and leased to tax exempt entities – Earnings and profits 44
  45. 45. Alternative Depreciation System (ADS) (slide 2 of 2)• Generally, use straight-line recovery without regard to salvage value – For AMT, 150% declining balance is allowed for personalty – Half-year, mid-quarter, and mid-month conventions still apply 45
  46. 46. Amortization (slide 1 of 2)• Can claim amortization deduction on § 197 intangibles – Use straight-line recovery over 15 years (180 months) beginning in month intangible is acquired• Section 197 intangibles include acquired goodwill, going-concern value, trademarks, trade names, etc. 46
  47. 47. Amortization (slide 2 of 2)• Startup expenditures are also partially amortizable under § 195 – Treatment is available only by election• Allows the taxpayer to deduct the lesser of: – The amount of startup expenditures, or – $5,000, reduced by the amount startup expenditures exceed $50,000 – Any amounts not deducted may be amortized ratably over 180-months beginning in month trade or business begins 47
  48. 48. Depletion (slide 1 of 4)• Two methods of natural resource depletion – Cost: determined by using the adjusted basis of the resource and allocating over the recoverable units – Percentage: determined using percentage provided in Code and multiplying by gross income from resource sales 48
  49. 49. Depletion (slide 2 of 4)• Cost depletion – Depletion is computed on a per unit basis – Per unit amount is determined by dividing the basis of the resource by the estimated recoverable units of resource • Number of units sold in year × per unit depletion = depletion for year – Total depletion can not exceed total cost of the property 49
  50. 50. Depletion (slide 3 of 4)• Percentage depletion – Depletion is computed by using the statutory percentage rate for the type of resource – Rate is applied to the gross income from the property 50
  51. 51. Depletion (slide 4 of 4)• Percentage depletion – Percentage depletion cannot exceed 50% of the taxable income (before depletion) from the property – Percentage depletion reduces basis in property – However, total percentage depletion may exceed the total cost of the property • Example: Property with zero basis but still generating income 51
  52. 52. Intangible Drilling Costs (IDC)• Intangible drilling costs include – Costs for making the property ready for drilling – Costs of drilling the hole• Treatment of IDC – Expense in the year incurred, or – Capitalize and write off through depletion• It is generally advantageous to write off IDC immediately 52
  53. 53. The Big Picture - Example 47 Tax Planning• Return to the facts of The Big Picture p. 8-1.• In January 2012, Dr. Payne purchased residential rental property for $170,000 ($20,000 allocated to the land, $150,000 to the building). – He made a down payment of $25,000 and assumed the seller’s mortgage for the balance.• Since the property was already occupied, Dr. Payne continued to receive rent of $1,200 per month from the tenant.• Assume any losses generated by the property are currently deductible and he is in the 28% tax bracket.• During 2012, Dr. Payne’s expenses were as follows: Interest $10,000 Taxes 800 Insurance 1,000 Repairs and maintenance 2,200 Depreciation ($150,000 X .03636) 5,454 Total $19,454 53
  54. 54. The Big Picture - Example 47 Tax Planning• The deductible loss from the rental property is computed as follows: Rent income ($1,200 X 12 months) $ 14,400 Less expenses (see above) (19,454) Net loss ($ 5,054)• But what is Dr. Payne’s overall position for the year when the tax benefit of the loss is taken into account?• Considering just the cash intake and outlay, it is summarized below: Intake— Rent income $14,400 Tax savings [28% (income tax bracket) X $5,054 (loss from the property)] 1,415 Net Intake $ 15,815 Outlay— Mortgage payments ($1,000 X 12 months) 12,000 Repairs and maintenance 2,200 Net Outlay (14,200) Net cash benefit $ 1,615 54
  55. 55. Refocus On The Big Picture• Evidently, Dr. Payne’s accounting system uses MACRS because $91,298 of depreciation is the correct amount. – The computers and peripheral equipment are 5-year property. – The furniture and fixtures and the dental equip. are 7-year property.• Based on the IRS tables, the following percentages are used to calculate first year depreciation expense: 5-year property 20.00% 7-year property 14.29%• Dr. Payne will also be able to deduct depreciation on the house he converted from personal use to rental use and on the rental house that he purchased. 55
  56. 56. If you have any comments or suggestions concerning this PowerPoint Presentation for South-Western Federal Taxation, please contact: Dr. Donald R. Trippeer, CPA trippedr@oneonta.edu SUNY Oneonta© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 56

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