- (Income Tax) The French Chemical Corporation was formed to produce household bleach. The firm bought land for $220,000, had a $900,000 factory building erected, and installed $650,000 worth of chemical and packaging equipment. The plant was completed and operations begun on April 1. The gross income for the calendar year was $450,000. Supplies and all operating expenses, excluding the capital expenditures, were $100,000. The firm will use modified accelerated cost recovery system (MACRS) depreciation of 7-year property class.

(a) What is the first-year depreciation charge?

(b) What is the first-year taxable income?

(c) How much will the corporation pay in federal income taxes for the year?

please help.