Question
Portsmouth Printing Corporation recently purchased a truck for $47,000. Under MACRS, the first years depreciation was $9,400. The truck drivers salary in the first year
Portsmouth Printing Corporation recently purchased a truck for $47,000. Under MACRS, the first years depreciation was $9,400. The truck drivers salary in the first year of operation was $69,000. The companys tax rate is 30 percent.
| Required: |
| 1-a. | Calculate the after-tax cash outflow for the acquisition cost and the salary expense. Acquisition Cost: Salary Expense: |
| 1-b. | Calculate the reduced cash outflow for taxes in the first year due to the depreciation. Reduced Cash Outflow: |
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Accounting Principles A Business Perspective Financial Accounting Chapters 9 To 18
Authors: Bill Buxton, Amy Sibiga
1st Edition
1461160863, 978-1461160861
