Daly Publishing Corporation recently purchased a truck for $49,000. Under MACRS, the first year's depreciation was $9,800. The truck driver's salary in the first year of operation was $72,600. The company's 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.