5. The XYZ Company builds finished plastic products and has decided to build a new plant. Land cost is $650,000, a plant is built for $1,400,000, manufacturing equipment (special tools) is installed at a cost of $600,000. The factory was completed and began operation on June 1. The gross income for the calendar year was $1,700,000. Supplies and operating expenses excluding capital expenditures were $600,000. What is firms taxable income for the first year? b. How much in taxes will the firm pay in the first year? Use MACRS Depreciation for all capital assets. a