Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help figuring out the earningset tax and the balance please . Please fill the blanks below. Depreciation Year SYD SL 1 1) $200,000
I need help figuring out the earningset tax and the balance please .
Please fill the blanks below. Depreciation Year SYD SL 1 1) $200,000 24) $150,000 3 $100,000 47) $50,000 Difference 125,000 75,000 125,000 25,000 125,000 6) -$25,000 125,000 -75,000 Marginal Tax Earnings Rate (30%) Tax Savings Net/Tax Balance 0.3 2) $22,500 $03) 0.3 7,500 5) 31,575 0.3 -7,500 2,210.25 26,285.25 0.3 -22,500 1,839.978) Total Earnings Net: 9) The Green Pine Hotel has always depreciated its fixed assets using the straight-line method for both book and tax purposes. L.M. Branch, a newly hired tax consultant, has suggested this results in excessive taxes and has recommended the SYD method be used for future equipment purposes. Planned equipment purchases for 20X2 and other relevant information are as follows: -$500,000 --11/01/X2 -0 Cost of Equipment:--- Assumed purchase date: Salvage value: Useful life: Marginal tax rate: Investment interest rate: four years 30% 10% Assume: All "tax savings" for one year are invested at the beginning of the following yearStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started