Portsmouth Printing Corporation recently purchased a truck for $36,000. Under MACRS, the first years depreciation was $7,200.

Question:

Portsmouth Printing recently purchased a truck for $36,000. Under MACRS, the first year’s depreciation was $7,200. The truck driver’s salary in the first year of operation was $38,400.

Required:
Show how each of the amounts mentioned above should be converted to an after-tax mount. The company’s tax rate is 30 percent.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...