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help plz Check My Work eBook Problem 9-07 A firm has earnings of $23,000 before interest, depreciation, and taxes. A new piece of equipment is
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Check My Work eBook Problem 9-07 A firm has earnings of $23,000 before interest, depreciation, and taxes. A new piece of equipment is installed at a cost of $14,000. The equipment will be depreciated over five years, and the firm pays 25 percent of its earnings in taxes. What are the earnings and cash flows for the firm in years 2 and 5, using the two methods of depreciation? Use Exhibit 9.4 to answer the questions. Round your answers to the nearest dollar. Modified Accelerated Straight-line Cost Recovery Year 2 Year 5 Year 2 Year 5 $ $ $ Earnings before depreciation 23000 23000 23000 23000 and taxes Depreciation expense 1800 1800 Earnings after depreciation X Taxes (25% tax rate) Net earnings $ $ $ $ Cash flow $ $ $ $Step by Step Solution
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