Homework Answers
a). Depreciation expense calculated by you = $16,580
b). New taxable income = $430,000 - $16,580 = $413,420
Tax liability = $113,900 + [($413,420 - $335,000) * 0.34] =
$113,900 + $26,662.80 = $140,562.80
Original tax liability before depreciation expense:
Tax liability = $113,900 + [($430,000 - $335,000) * 0.34] =
$113,900 + $32,300 = $146,200
Tax savings = $146,200 - $140,562.80 = $5,637.20 or $5,637 rounded off.
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tax rate schedule , i cant figure it out
MACRS depreciation expense and accounting cash flow...
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Tables attached in photos This Quiz: 8 pts possi MACRS depreciation expense and accounting cash flow...
Tables attached in photos
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Please complete Part B
MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc., a maker of precision telescopes, expects to report pretax income of $425,000 this year. The company's financial manager is considering the timing of a purchase of new computerized lens grinders. The grinders will have an installed cost of $78,500 and a cost recovery period of 5 years. They will be depreciated using the MACRS schedule A. Corporate tax rates are given A a. If the firm...
Tables attached in photos
This Quiz: 8 pts possi MACRS depreciation expense and accounting cash flow Pavkovich Instbruments, makor Inc, a maker of precision telescopes, expects to report pretax income of $422.000 this year The iming of a purchase of new computerized lens grinders. The grinders will have a given company's inancial manager is considering the and a cost recevery period of 5 years They will be depreclated unsing the MACRS schedule Coporate tax rates are a. I the Srm...
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