Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

calculate the tax analysis of the following situation. a company buys a tugboat (tug) for 1,700,000. it will generate a before tax revenue of 1,200,000

calculate the tax analysis of the following situation. a company buys a tugboat (tug) for 1,700,000. it will generate a before tax revenue of 1,200,000 per year with yearly maintenance expenses of 200,000. the company plans to keep the boat for at least 20 years. with an effective tax rate of 40% and using MACRS GDS depreciation show yearly before tax net revenue, depreciation, taxable income, taxes paid and after cash flow. calculate this for 10 years. in addition, using I=6% calculate the present worth of this system after taxes using the first five years only. (answer my be negative)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

1. In what ways has flexible working revolutionised employment?

Answered: 1 week ago