Question: Assume the same facts as in Exercise 11- 13 except that Techno Labs is a tax- paying entity. The income tax rate is 30% for

Assume the same facts as in Exercise 11- 13 except that Techno Labs is a tax- paying entity. The income tax rate is 30% for all transactions that affect income taxes.

Required

1. Do requirement 1 in Exercise 11- 13.

2. How would your computations in requirement 1 be affected if the special- purpose machine had a $ 12,000 terminal disposal value at the end of 8 years? Assume depreciation deductions are based on the $ 120,000 purchase cost and zero terminal disposal value using the straight- line method. Answer briefly in words without further calculations.

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