12. Given a piece of equipment that has an initial cost of $250,000, a depreciable depreciable life of 10 years, calculate the first two years of depreciation with the salvage of $50,000, and a Sollowing methods: Sum-of- Years" Digits remember to show work for buth years) Double Declining Balance (remember fo show-o. Ar hoch yran) Straight Line (remember to show work for beth es wben using the MACRS 10or property clas., the book value afier two years is $180,000. Given this depreciation in year 3. percentage for year 3 is 14.40% determine the 13, Given a S50,000 loan rate of 10% per year fr five years, the second year (oearly payments are mauke on the loam) Clearb the interest in the second year determine the amount of interest that will be paid in NOTE: You only have to show the work necessary to determine 14. The math that is used to derive this value. percentage depreciation for the first year in the MACRS seven-year property class is l 429%, show the 15. Based on the knowledge we have gained on income taxes for businesses, answer the following questions. Note: Each question is independent. That is, none of the questions rely on information given in previous questions. Gross Income-$100,000: Business Expenses-$35,000, depreciation-S10,000; tax rate-34% what is the after-tax cash flow? Taxable Income ATCF B TCF-$150,000, Depletion-$5,000; loan interest-s 10.000, loan payment-si 6,275; tax rate-34%. What is the after-tax cash flow? Taxable Income- Taxes ATCF Gross Income $50,000; Business Expenses rate-34%, what is the after-tax cash flow? $10,000; Depreciation $5,000; Depletion- $7,000; tax Taxable Income- Taxes ATCF BTCF-$75,000; Depreciation-$14,000, tax rate-34%, what is the after-tax cash flow? Taxable Income Taxes ATCF Initial Equipment Cost-S50,000; Depreciable Salvage = $10,000; Depreciable Life-5 years, Depreciation Used-Straight Line; Equipment Kept for 4 years and sold for $20,000, tax rate-34%. What is the after-tax cash flow for the salvage pertion of year 4? Taxable Income- Taxes = ATCF