Daly Publishing Corporation recently purchased a truck for $44,000. Under MACRS, the first year's depreciation was $8,800.
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Question:
Daly Publishing Corporation recently purchased a truck for $44,000. Under MACRS, the first year's depreciation was $8,800. The truck driver's salary in the first year of operation was $63,600. The company's tax rate is 30 percent.
Required:
- Calculate the after-tax cash outflow for the acquisition cost and the salary expense.
- Calculate the reduced cash outflow for taxes in the first year due to the depreciation.
Aquisition cost?
Salary expense?
Reduced cash outflow?
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton
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