pts.) 9. Open Access, Inc. is an international provider of computer network communications gear. Different depreciation,...

 

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pts.) 9. Open Access, Inc. is an international provider of computer network communications gear. Different depreciation, recovery period, and tax law practices in the two countries where depreciable assets are located are summarized in the table below. Also, information about assets purchased 5 years ago at each location and sold this year is provided. After-tax MARR = 9% per year and the effective total tax rate is 30% can be used for all of the countries. Practice or Estimate Depreciation Method First Cost, $ Capital Gain or Capital Loss Not Taxed Gross income-expenses, $/year Estimated salvage. $ Life, years Country 1 Actual selling price, $ SL with n = 5 -100.000 25,000 0 in year 5 5 20,000 in year 5 Country 2 DDB with n=5 Taxed as TI -100,000 25,000 8,000 in year 5 S 20,000 in year 5 Determine the CFAT series for Country 1 and Country 2. Show CFAT tables to construct the CFAT series for both of the options. pts.) 9. Open Access, Inc. is an international provider of computer network communications gear. Different depreciation, recovery period, and tax law practices in the two countries where depreciable assets are located are summarized in the table below. Also, information about assets purchased 5 years ago at each location and sold this year is provided. After-tax MARR = 9% per year and the effective total tax rate is 30% can be used for all of the countries. Practice or Estimate Depreciation Method First Cost, $ Capital Gain or Capital Loss Not Taxed Gross income-expenses, $/year Estimated salvage. $ Life, years Country 1 Actual selling price, $ SL with n = 5 -100.000 25,000 0 in year 5 5 20,000 in year 5 Country 2 DDB with n=5 Taxed as TI -100,000 25,000 8,000 in year 5 S 20,000 in year 5 Determine the CFAT series for Country 1 and Country 2. Show CFAT tables to construct the CFAT series for both of the options.

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CFAT series is derived by subtracting tax applied from CFBT series and its expr... View the full answer