QUESTION 1 Acme Industries had sales last year of 12,000,000 They had expenses of 9,755,000 They purchase several pieces of new equipment during the year that: Cost $3,000,000 to purchase Had $1,100,000 related costs to set up install etc. Has a salvage value of 750,000 in 5 years Using straight line depreciation what are the taxable earnings. 1,789,000 1,850,000 1,910,000 1,987,655 QUESTION 2 Acme Industries had sales last year of 12,000,000 They had expenses of 9,755,000 They purchase several pieces of new equipment during the year that: Cost $3,000,000 to purchase Had $1,100,000 related costs to set up install etc. Has a salvage value of 750,000 in 5 years Using straight line depreciation calculate the amount of tax owed 325,000 517,563 O 649,400 789,456 QUESTION 3