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Rental House purchased for 150000. Depreciable Value $150,000.00 Depreciable life 8 years Year 1 2 3 4 5 6 7 8 Deprecaition Rates 3.485% 3.636%
Rental House purchased for 150000.
| Depreciable Value | $150,000.00 | |||||||
| Depreciable life | 8 | years | ||||||
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Deprecaition Rates | 3.485% | 3.636% | 3.636% | 3.636% | 3.636% | 3.636% | 3.636% | 3.636% |
| Depreciation | $5,227.50 | $5,454.00 | $5,454.00 | $5,454.00 | $5,454.00 | $5,454.00 | $5,454.00 | $5,454.00 |
| Cumulative Depreciation | $5,227.50 | $10,681.50 | $16,135.50 | $21,589.50 | $27,043.50 | $32,497.50 | $37,951.50 | $43,405.50 |
Assuming that you earn $120,000, what will the yearly and cumulative tax saving be for this investment after the 8th year? (Using a straight/ordinary tax rate of 25%
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Financial Accounting Objective Questions And Explanations
Authors: Irvin N. Gleim
6th Edition
0917537718, 978-0917537714
