$1$

Exercise $16-30$ After$-$Tax Cash Flows $($Section $2)($LO $16-4)$

$0\mathrm{.}5$ points

Daly Publishing Corporation recently purchased a truck for $$30,000.$ Under MACRS, the first year's depreciation was $$6,000.$ The truck driver's salary in the first year of operation was $$32,000.$ The company's tax rate is $30$ percent.

$01$:$45$:$03$ Required:

$1-$a$.$ Calculate the after$-$tax cash outflow for the acquisition cost and the salary expense.

$1-$b$.$ Calculate the reduced cash outflow for taxes in the first year due to the depreciation.

Complete this question by entering your answers in the tabs below.

eBook

Req $1$ A

Req $1B$

Calculate the reduced cash outflow for taxes in the first year due to the depreciation.