# Calculate taxable income Sales in unit are as follows Year 1 - 10000 Year 2 - 20000

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## Question:

**Calculate taxable income**

Sales in unit are as follows

Year 1 - 10000

Year 2 - 20000

year 3 - 40000

Year 4 - 45000

Year 5 - 41000

Year 6 - 25000

Rate per unit - $45

Variable Cost per unit - $25

Fixed Cost per year - $50,000

Initial investment - $600,000

Salavage - $50,000 at the end of 6th year

Cost of capital - 15%

tax rate 34%

Depreciation Method - Prime cost to zero method

**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill