1. Chapter 2 Tax and Cash Flow Assignment Spring 2022 Your firm purchased and put into service capital (fixed) assets in The cost was $300,000. The assets are in the 7-year MACRS category. Compute depreciation expense for the 2021 tax return. 2018. 2. A U.S. corporation has $7,000,000 in taxable income for 2021. Calculate the firm's tax liability for 2021. 3. Use the financial statements below. a. b. C. Calculate depreciation expense for 2021. Calculate Operating Cash Flow for 2021. Calculate Cash Flow from Assets for 2021. Abe's, Inc. Consolidated Statement of Income, Year Ended 12/31/21 (millions) Net sales Cost of sales Gross profit Selling, general, administrative expenses Impairments, store closings, and other costs Net Operating income (or EBIT) Net interest expense Income before income taxes Income tax Net income Consolidated Balance Sheets (millions) $35,131 21,079) $14,052 (10,016) 87) $ 3,949 410) $ 3,539 743) $ 2,796 Current assets Gross fixed assets. Less accum. depreciation Net fixed assets Other assets Total assets Current liabilities Long-term liabilities Shareholders' equity Total liabilities & equity 12/31/21 $ 8,780 $19,394 (10,594) $14,996 8,066) 8,800 4,982 $22,562 $ 6,536 9,547 6,479 $22,562 12/31/20 $ 8,688 6,930 5,016 $20,634 $ 5,726 9,659 5,249 $20,634