Which of the following is(are) required to calculate MACRS-GDS depreciations deductions? Property class and First Cost Salvage Value first cost Annual Maintenance costs An X-ray machine used for R & D is MACRS 5-year property. It costs $6,000 and has an expected use life of 8-year with salvage value of $500. Assuming MACRS depreciation, what is the book value at the end of the third year? $1, 584 $1, 728 $3, 916 $4, 272 When a business calculate taxable income from gross income, which of the following is true? Depreciation, loan interest, and principal are all subtracted depreciation and loan interest are subtracted, principal is not depreciation is subtracted, loan interest, and principal are not loan interest and principal are subtracted, depreciation is not Consider the following data extracted from an after-tax cash flow calculation. Which of the following to the Taxable income? Before Tax cash Flow = $22, 500 Loan Principal Payment = $5, 926 Loan interest Payment = $2, 400 MACRS Depreciation Deduction = $16, 665 -$2.491 -$91 $3.435 $14, 174 This past year ACE industries had income from operations of $8.2 million and expenses of $1.8 million Allowances for depreciated capital expenses were $400,000. What is ACE's taxable income and federal taxes owed for operations last year? Choose the closet values. $6.0 million; $1.93 million $6.0 million; $2.04 million $6.4 million; $1.93 million $6.4 million; $ 2.04 million Project 1 requires an initial investment on $50,000 and has an internal rate of return (IRR) of 18%. A mutually exclusive alternative, project 2, requires an investment of $70,000 and has an IRR of 23%. Which of the following statements is true concerning the rate of return on the incremental $20,000 investment? It is less than 18% It is between 18 and 23% It is greater than 23% It cannot be determined from the data given