Telstar Communications is going to purchase an asset for $380,000 that will produce $180,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 1212. (This represents four years of depreciation based on the half-year convention.) The firm is in a 35 percent tax bracket. Fill in the schedule below for the next four years. (Input all amounts as positive values. Round your answers to the nearest whole dollar amount.)

Year 1

Year 2

Year 3

Year 4

Earnings before depreciation and taxes

$

$

$

$

Depreciation

Earnings before taxes

$

$

$

$

Taxes

Earnings after taxes

$

$

$

$

Depreciation

Cash flow

$

$

$

$