Intro

You bought a delivery van for your business for $$35,000$ four years ago, which is your only fixed asset. Last year, your business had revenue of $$36,000,$ costs of $$18,000$ and an average tax rate of $28\%.$ The business doesn't have any debt.

Part $1$

Attempt $\frac{1}{5}$ for $10$ pts$.$

Into which property class does the van belong? Check IRS publication $946,$ How to depreciate property. Search for "Which Property Class Applies Under GDS$."$ Enter $"3"$ for $3-$year property, $"5"$ for $5-$year property, and so on$.$

Correct $$

Part $2$

Attempt $\frac{1}{5}$ for $10$ pts$.$

What is the depreciation amount for the van for last year $($in $$)?$ Use Table A$-1$ in IRS publication $946$ to look up the depreciation percentages for each year.

Correct $$

Part $3$

Attempt $2/5$ for $9$ pts$.$

What is the operating cash flow for last year?