Four years ago a division of Harcourt-Banks purchased an asset that was depreciated by the MACRS method

Question:

Four years ago a division of Harcourt-Banks purchased an asset that was depreciated by the MACRS method using a 3-year recovery period. The total revenue for year 2 was $48 million, depreciation was $8.2 million, and operating expenses were $28 million. Use a federal tax rate of 35% and a state tax rate of 6.5% to determine

(a) CFAT,

(b) Percentage of total revenue expended on taxes,