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1. A company buys a 5-year MARCS Property Class asset for $100,000 and generates an annual net income of $25,000 for year1, $30,00 for year

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1. A company buys a 5-year MARCS Property Class asset for $100,000 and generates an annual net income of $25,000 for year1, $30,00 for year 2, and $80,000 for year 3, after deducting all the expenses. Complete the BEFORE TAX CASH FLOW (BTCF), DEPRECIATION AMOUNT (not %), TAXABLE INCOME, TAXES and AFTER TAX CASH FLOW (ATCF) for the Years 0, 1, 2, 3 ONLY, in the TABLE GIVEN AT THE END. Calculate DEPRECIATION, TAXABLE INCOME and TAXES separately (see below) and then enter the values in the table given at the end. (No points for just multiplying and dividing numbers in your calculators.) a. Depreciation: see depreciation tables Dep. Dep. Amount Year 0 1 2 3 b. Taxable income: (Income - expenses - depreciation) - Expenses given as o Income (BTCF). Taxable income $ Year 0 1 2 3 c. Taxes - See tax tables given in class Year 0 Taxes. $ 1 2 3 d. Now complete the Table below, neatly! Year 0 Dep. $. Taxable income $ Taxes, ATCF $ BTCF -90,000 1 2 3 1. A company buys a 5-year MARCS Property Class asset for $100,000 and generates an annual net income of $25,000 for year1, $30,00 for year 2, and $80,000 for year 3, after deducting all the expenses. Complete the BEFORE TAX CASH FLOW (BTCF), DEPRECIATION AMOUNT (not %), TAXABLE INCOME, TAXES and AFTER TAX CASH FLOW (ATCF) for the Years 0, 1, 2, 3 ONLY, in the TABLE GIVEN AT THE END. Calculate DEPRECIATION, TAXABLE INCOME and TAXES separately (see below) and then enter the values in the table given at the end. (No points for just multiplying and dividing numbers in your calculators.) a. Depreciation: see depreciation tables Dep. Dep. Amount Year 0 1 2 3 b. Taxable income: (Income - expenses - depreciation) - Expenses given as o Income (BTCF). Taxable income $ Year 0 1 2 3 c. Taxes - See tax tables given in class Year 0 Taxes. $ 1 2 3 d. Now complete the Table below, neatly! Year 0 Dep. $. Taxable income $ Taxes, ATCF $ BTCF -90,000 1 2 3

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