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1. (20 points) A company bought an AGV for its distribution center for $800,000 and its installation cost were $200,000. The AGV has a 5-year
1. (20 points) A company bought an AGV for its distribution center for $800,000 and its installation cost were $200,000. The AGV has a 5-year MACRS-GDS property class. During the 3th year the company disposes the asset with a salvage value of $550,000. The company tax rate is 40%. The BTC&LCF per year is 100,000. The company financed the total cost of the AGV with a loan at 5%, which needs to be paid in three years with the following terms: only interests are paid years 1, 2 and 3, and the principal is paid at the end of year 3. Fill the following table Year BTCF Salvage DWO Section 179 IPMT PPMT TIT A TCF BV 1. (20 points) A company bought an AGV for its distribution center for $800,000 and its installation cost were $200,000. The AGV has a 5-year MACRS-GDS property class. During the 3th year the company disposes the asset with a salvage value of $550,000. The company tax rate is 40%. The BTC&LCF per year is 100,000. The company financed the total cost of the AGV with a loan at 5%, which needs to be paid in three years with the following terms: only interests are paid years 1, 2 and 3, and the principal is paid at the end of year 3. Fill the following table Year BTCF Salvage DWO Section 179 IPMT PPMT TIT A TCF BV
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