Intro

You bought a delivery van for your business for $$34,000$ four years ago, which is

your only fixed asset. Last year, your business had revenue of $$42,000,$ costs of

$$21,000$ and an average tax rate of $28\%.$ The business doesn't have any debt.

Part $1$

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$.$

Part $2$

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.

Part $3$

What is the operating cash flow for last year?