You bought a delivery van for your business for $21,000 four years ago, which is your only fixed asset. Last year, your business had revenue of $36,000, costs of $18,000 and an average tax rate of 28%. The business doesn't have any debt.

Part 1

Into which property class does the van belong? Check IRS publication 946, How to depreciate property. Search for "Which Property Class Applies Under GDS." Enter "3" for 3-year property, "5" for 5-year property, and so on.

Part 2

What is the depreciation amount for the van for last year (in $)? Use Table A-1 in IRS publication 946 to look up the depreciation percentages for each year.

Part 3

What is the operating cash flow for last year?