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The Bunson Machining Company is considering purchasing a new set of machine tools to process special orders. The following financial information is available: * Without
"The Bunson Machining Company is considering purchasing a new set of machine tools to process special orders. The following financial information is available: * Without the project, the company expects to have taxable income of $140,000 each year from its regular business over the next three years. * The federal income tax rate is 21%, and the state income tax rates is 6%. * With the three-year project, the purchase of a new set of machine tools at a cost of $36,000 is required. The equipment falls into the MACRS three-year class. The tools will be sold for $5,000 at the end of project life. The project will bring in additional annual revenue of $54,000, but it is expected to incur additional operating costs of $11,000. How much will the Bunson Company pay in income taxes (federal and state combined) in year 3? Do not include the gains taxes in your calculations
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