1.In August ,Jumbo corporation (a calendar year corporation 0 purchased used computers for $655,00.these are the only assets Jimbo purchased this year. Corporation is in the 34% marginal tax bracket and uses a discount of 6% for evaluation. Assuming that Jimbo makes any necessary elections to maximize the depreciation deduction ,what is the after tax cost of the computers if they are place in service in a.2011 b.2012 2.Robert, the sole proprietor of a consulting business, has gross receipts of $500,000 in 2004. Expenses paid by his business are: Advertising $ 2,500 Employee salaries 150,000 Office rent 24,000 Supplies 18,000 Taxes and licenses 17,000 Travel (other than meals) 3,800 Meals and entertainment 2,400 Utilities 3,800 Employee health insurance premiums 6,600 Health insurance premiums for Robert 2,200 Robert purchased a new car for his business on May 15 at a cost of $28,000. He also purchased $50,000 of new 5-year equipment and $70,000 of used 7-year fixtures on August 1. Robert drove the new car 10,000 miles (8,000 for business and 2,000 personal miles). He paid $200 for business-related parking and tolls. He also paid $1,000 for insurance and $1,200 for gasoline and oil for the new car. He would like to maximize his deductions. a. What is Roberts net income (loss) from his business? b. How much self-employment tax must Robert pay? c. If this is Roberts only source of income, what is his adjusted gross income? 3.I march 2013, Arco Corporation decides to acquire some heavy equipment (this is in addition to the $2,500,000 in equipment purchases it has previously made this year). The new equipment is 7-year class property, but Arco expects that it will be able to use the equipment for 8 years. It could purchase the equipment for $120,000 cash and at the end of 8 years it would have no salvage value. Alternatively, Arco could lease the equipment for 8 years for $22,000 annually. Arco is in the 35 percent marginal tax bracket and uses a 6 percent discount rate for evaluation. Should Arco purchase or lease the equipment? Prepare a schedule showing your calculations to support your recommendation