Practice problem 1. Kyle owns a construction company (sole proprietorship), which nets $500,000. Assume his exemptions and deductions are $100,000/year. Also, assume that Kyle has just purchased a 5-year class excavator for $200,000. The use the tax and MACRS depreciation tables attached. Show all 6 years of depreciation Kyle Income Exemptions& Yr 2022 $500,000 Deductions Depreciation Taxable Income Tax Paid 1. Calculate the Taxable Income in Year 1, assuming the MACRS depreciation on the attached, and calculate his yearly taxes, assuming he is a single Taxpayer. 2. If Kyle incorporates the business, and pays himself a salary of $150,000, what would be the total tax payments for the corporation and Kyle? Corporation Year 1 Income $500,000 Salary Depreciation Taxable Income Tax Paid Kyle's Year 1 Salary Salary $150,000 Deductions Taxable Income Tax Paid