Part d continues up to EOY of 8

An injection molding machine can be purchased and installed for $70,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $8,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added (i.e., revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $19,000. An effective income tax rate of 30% is used by the company, and the after-tax MARR equals 15% per year. Click the icon to view the GDS Recovery Rates () for the 7-year property class. 7 8 6251 3122 c. What is the taxable income at the end of year eight that is related to capital investment? The taxable income at the end of year eight is $ 8000. (Round to the nearest dollar.) d. Set up a table and calculate the ATCF for this machine. (Round to the nearest dollar.) BTCF, S Depreciation, TI, $ T(30%), s ATCF, $ 0 - 70,000 - 70,000 19000 2715.1 PW(15%), $ - 70,000 1 GDS Recovery Rates (ru) Year 7-year Property Class 1 0.1429 2 0.2449 3 0.1749 4 0.1249 5 0.0893 6 0.0892 7 0.0893 8 0.0446 Nm An injection molding machine can be purchased and installed for $70,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $8,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added (i.e., revenues less expenses) that can be attributed to this machine is constant over eight years and amounts to $19,000. An effective income tax rate of 30% is used by the company, and the after-tax MARR equals 15% per year. Click the icon to view the GDS Recovery Rates () for the 7-year property class. 7 8 6251 3122 c. What is the taxable income at the end of year eight that is related to capital investment? The taxable income at the end of year eight is $ 8000. (Round to the nearest dollar.) d. Set up a table and calculate the ATCF for this machine. (Round to the nearest dollar.) BTCF, S Depreciation, TI, $ T(30%), s ATCF, $ 0 - 70,000 - 70,000 19000 2715.1 PW(15%), $ - 70,000 1 GDS Recovery Rates (ru) Year 7-year Property Class 1 0.1429 2 0.2449 3 0.1749 4 0.1249 5 0.0893 6 0.0892 7 0.0893 8 0.0446 Nm