Portsmouth Printing Corporation recently purchased a truck for $44,000. Under MACRS, the first years depreciation was $8,800. The truck drivers salary in the first year of operation was $63,600. The companys tax rate is 30 percent.

Required:

1-a.	Calculate the after-tax cash outflow for the acquisition cost and the salary expense.

1-b.	Calculate the reduced cash outflow for taxes in the first year due to the depreciation.