Question: 1- A high precision programmable router for shaping furniture components is purchased by Henredon for $105000. It is expected to last 12 years and have

1- A high precision programmable router for shaping furniture components is purchased by Henredon for $105000. It is expected to last 12 years and have a salvage value of $2000. It is considered a MACRS 7 year property. It will produce $28000 in net revenue each year during its life. Corporate income taxes are 0.40 and the after-tax MARR is 0.13%.

What is the Taxable Income for year 1?

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2- A high precision programmable router for shaping furniture components is purchased by Henredon for $145000. It is expected to last 12 years and have a salvage value of $3500. It is considered a MACRS 7 year property. It will produce $85000 in net revenue each year during its life. Corporate income taxes are 0.41 and the after-tax MARR is 0.11%.

What is the ATCF for year 2?

Your Answer:

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