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Current Attempt in Progress Stellar Enterprises purchased a delivery truck on January 1, 2020, at a cost of $32.500. The truck has a useful life
Current Attempt in Progress Stellar Enterprises purchased a delivery truck on January 1, 2020, at a cost of $32.500. The truck has a useful life of 7 years with an estimated salvage value of $6,040. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2020 and 2021 the company has revenues of $236,000 and operating expenses (excluding depreciation) of $153.400. Compute book income before income taxes for 2020 and 2021. 2020 2021 Income before income taxes $ $ 0 Compute taxable income for 2020 and 2021. (Round answers to O decimal places, e.g. 45,892.) Taxable income for 2020 Taxable income for 2021 Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes. Book purposes $ Tax purposes $
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