David owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is...

Transcribed Image Text:

David owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume his exemptions and deductions are $10,000/year for all 6 years. Also, assume that David has just purchased a 5-year class concrete mixer for $100,000. The tax and MACRS depreciation tables attached. David Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Income $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 Deductions Depreciation Тахable Income Tax Paid Calculate the Taxable Income in Year 1 through 6, assuming the MACRS depreciation on the attached, and calculate his yearly taxes, assuming he is single Taxpayer. David owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume his exemptions and deductions are $10,000/year for all 6 years. Also, assume that David has just purchased a 5-year class concrete mixer for $100,000. The tax and MACRS depreciation tables attached. David Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Income $200,000 $210,000 $220,000 $230,000 $240,000 $250,000 Deductions Depreciation Тахable Income Tax Paid Calculate the Taxable Income in Year 1 through 6, assuming the MACRS depreciation on the attached, and calculate his yearly taxes, assuming he is single Taxpayer.

Answer rating: 100% (QA)

Year1 Year 2 Year 3 Year4 Year5 Year6 Income 200000 210000 220000 230000 240000 250000 D... View the full answer