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

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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 answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

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

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Posted Date: Sep 22, 2023 04:03 AM

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

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To calculate the taxable income we need to calculate the net income first and then apply the appropriate tax rate Lets break down the calculation step ... View the full answer

Income Tax Fundamentals 2013

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