Homework Answers
Total value without land = 1900000 - 200000 = 1700000
| Year | Investment | Annual revenue | Depreciation | Taxable income | Tax | ATCF |
| 0 | 1700000 | 0 | ||||
| 2015 | 135000 | 34561 | 100439 | 25109.75 | 109890 | |
| 2016 | 180000 | 43588 | 136412 | 34103 | 145897 | |
| 2017 | 180000 | 43588 | 136412 | 34103 | 145897 | |
| 2018 | 105000 | 27285 | 77715 | 19428.75 | 85571 |
Book value in 2018 = 1700000 - 34561 - 43588 - 43588 - 27285 = 1550978
Sale of building = 2400000
200000 is land cost
So taxable income = 2200000 - 1550978 = 649022
Capital tax = 0.15 * 649022 = 97353.30
ATCF after capital tax in 2018 = 2400000 - 97353.30 = 2302646.70 = 2302647
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