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Attached is the question with the Table expanded and listed. Looking to be walked through how to understand the table AND solve the problem. Thanks

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Attached is the question with the Table expanded and listed. Looking to be walked through how to understand the table AND solve the problem. Thanks in advanced!

image text in transcribedimage text in transcribed
Telstar Communications is going to purchase an asset for $360,000 that will produce $170,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 1212. (This represents four years of depreciation based on the half-year convention.) The rm is in a 35 percent tax bracket. Fill in the schedule below for the next four years. Year 1 Year 2 Year 3 Year 4 Earnings before depreciation and taxes Depreciation Earnings before taxes $ 0 $ 0 $ 0 $ 0 Taxes Earnings after taxes 33 0 $ 0 $ 0 $ Depreciation Cash ow $ 0 $ 0 $ 0 $ 0

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