Daly Publishing Corporation recently purchased a truck for $33,000. Under MACRS, the first years depreciation was $6,600. The truck drivers salary in the first year of operation was $45,600. The companys tax rate is 30 percent.

Required:

1. 1-a. Calculate the after-tax cash outflow for the acquisition cost and the salary expense.

2. 1-b. Calculate the reduced cash outflow for taxes in the first year due to the depreciation.

Complete this question by entering your answers in the tabs below.

• Req 1A
• Req 1B

Calculate the after-tax cash outflow for the acquisition cost and the salary expense.

Calculate the reduced cash outflow for taxes in the first year due to the depreciation.

	After-Tax Cash Outflow
Acquisition cost
Salary expense

1-b. Calculate the reduced cash outflow for taxes in the first year due to the depreciation

Reduced cash outflow