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5. High-Tech Pumps has a gross income in 1 year of $15 million. Operating expenses (salaries and wages, materials, etc.) are $10 million. Depreciation is
5. High-Tech Pumps has a gross income in 1 year of $15 million. Operating expenses (salaries and wages, materials, etc.) are $10 million. Depreciation is $2.6 million. Also,
this year there is a depreciation recapture of $800,000 because a specialized CNC machine tool that is no longer needed is sold for more than its book value. (a) Compute the companys federal income taxes. (b) What is the average federal tax rate?
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