Question
Calculate taxable income Sales in unit are as follows Year 1 - 10000 Year 2 - 20000 year 3 - 40000 Year 4 - 45000
Calculate taxable income
Sales in unit are as follows
Year 1 - 10000
Year 2 - 20000
year 3 - 40000
Year 4 - 45000
Year 5 - 41000
Year 6 - 25000
Rate per unit - $45
Variable Cost per unit - $25
Fixed Cost per year - $50,000
Initial investment - $600,000
Salavage - $50,000 at the end of 6th year
Cost of capital - 15%
tax rate 34%
Depreciation Method - Prime cost to zero method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the taxable income we need to calculate the net income first and then apply the appropriate tax rate Lets break down the calculation step ...
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Step: 2
Step: 3
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
