Question
15 1.04 points 02.32.35 Exercise 16-30 After-Tax Cash Flows (Section 2) (LO 16-4) Daly Publishing Corporation recently purchased a truck for $30,000. Under MACRS,
15 1.04 points 02.32.35 Exercise 16-30 After-Tax Cash Flows (Section 2) (LO 16-4) 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 $40,200. The company's tax rate is 30 percent. 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.
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
2nd edition
978-1118334263
