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S. A steam boiler has basis of a cost basis of $50,000. Use the SOYD Depreciation method with a S5,000 salvage value and a 10-year

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S. A steam boiler has basis of a cost basis of $50,000. Use the SOYD Depreciation method with a S5,000 salvage value and a 10-year Hint: Workpreciation life, and determine the boiler's book value at the end of year eight BV- da; Comads starting with book value at the end of Yr 10.: BV- BV-die and BV. two equations to connect BVie with BVs caleulate de and dio using the formula, and then use your knowledge of what BVso is, and solvet) 6. A firm's annual revenues are 5635,000. Its expenses for the year are $428,000, and it claims $129,000 in depreciation expenses a) What does it pay in income taxes? Use Table 12-1 b) What is its after-tax cash income? office in a country where the corporate income tax rate is: 15% for first 000 of taxable income, 25% on next $25,000. 34% on next S25.000, and 39% on everything over ecutives estimate that they will have gross revenues of $500,000, total cost of $300,000, A company wants to set up a new S50, $100,000. Ex $30,000 in allowable tax deductions, and a one-time business start-up tax credit of $8,000 a) What will be its taxable income for the first year? b) How much should it expect to pay in taxes for the first year? 8. Magic Industries paid $272,000 in federal income taxes last year. If the total of busin depreciation charges was $300,000, what was their gross revenue for Given the amount of taxes paid, this an equation using taxes paid and amount of tax the unknown gross revenue, and solve for XI) the year? (Hint: Use Table 12-1 company falls in taxable income bracket: $335,000 to $10m. Write payable based on that taxable income bracket with X for %, and it pays ice of the 9. A $1,000 face value bond has 15 more years to maturity, annual coupon interest rate of 8 interest semi-annually. If the current market interest rate is 10%, what is the current market pr bond

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