WILL RATE:

Exercise 11-25 a-c Sunland Enterprises purchased a delivery truck on January 1, 2020, at a cost of $33,500. The truck has a useful life of 7 years with an estimated salvage value of $6,200. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2020 and 2021 the company has revenues of $242,000 and operating expenses (excluding depreciation) of $157,300. Recovery Year 20-year (150% DB) 3.750 7.219 6.677 MACRS Depreciation Rates by Class of Property 3-year 5-year 7-year 10-year (200% DB) (200% DB) (200% DB) (200% DB) 33.33 20.00 14.29 10.00 44.45 32.00 24.29 18.00 14.81* 19.20 17.49 14.40 7.41 11.52* 12.49 11.52 11.52 8.93* 9.22 5.76 8.92 7.37 8.93 6.55* 4.46 6.55 6.56 6.55 3.28 6.177 HNMOONTOOR 15-year (150% DB) 5.00 9.50 8.55 7.70 6.93 6.23 5.90* 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 5.713 5.285 4.888 4.522 4.462* 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 *Switchover to straight-line depreciation. Compute income before income taxes for 2020 and 2021. 2020 2021 Income before income taxes LINK TO TEXT Compute taxable income for 2020 and 2021. (Round answers to 0 decimal places, e.g. 45,892.) Taxable income for 2020 s Taxable income for 2021 s LINK TO TEXT Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes. Book purposes s Tax purposes Click if you would like to Show Work for this question: Open Show Work