Consider the following data extracted from an aftertax cash flow calculation: Before Tax Cash Flow (=$ 22,500)

Question:

Consider the following data extracted from an aftertax cash flow calculation:

Before Tax Cash Flow $=\$ 22,500$

Loan Principal Payment $=\$ 5,926$

Loan Interest Payment $=\$ 2,400$

MACRS Depreciation Deduction $=\$ 16,665$

Which of the following is closest to the taxable income?

a. $-\$ 2,491$

b. $-\$ 91$

c. $\$ 3,435$

d. $\$ 14,174$

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