For this case, "The company feels that the equipment can be sold for 60 percent of its initial purchase price. However, Bethesda plans to open another strip mine at that time and will use the equipment at the new mine. " Do we regard the 60% of its initial purchase prise as an income in the end of Year 4? If not, shall we consider the depreciation in Year 5 and Year6?

"In year 6, the company will donate the land to the state and this will result in a charitable expense deduction of $7.5 million."

Is the charitable donation of the land an expense? Why?