Your company is contemplating the purchase of a large stamping machine. The machine will cost $180,000. With additional transportation and installation costs of

$4,000 and $12,000,respectively, the cost basis for depreciation purposes is$196,000.Its MV at the end of five years is estimated as$40,000.The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include$43,000 savings per year in labor and$25,000savings per year in reduced materials. The before-tax MARR is22%per year, and the effective income tax rate is48%.What is the taxable income for year one?

Your company is contemplating the purchase of a large stamping machine. The machine will cost $180,000. With additional transportation and installation costs of $4,000 and $12,000, respectively, the cost basis for depreciation purposes is $196,000. Its MV at the end of five years is estimated as $40,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for his machine include $43,000 savings per year in labor and $25,000 savings per yea n duced materials The before-tax MAI RR s 22% per year, and the effective in tax rate is 48%. hat is the taxable income for year one? E Click the icon to view the GDs Recovery Rates (i for the 3-year property class Choose the nearest answer below. O A. The taxable income for year one is $130,673 O B. The taxable income for year one is $2,673. O C. The taxable income for year one is S68,000. O D. The taxable income for year one is S65,327 O E. The taxable income for year one is S8.006