Daly Publishing Corporation recently purchased a truck for $42,000. Under MACRS, the first years depreciation was $8,400. The truck drivers salary in the first year of operation was $60,000. The companys tax rate is 30 percent. Required: 1-a. Calculate the after-tax cash outflow for the acquisition cost and the salary expense.

	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