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#19 Given: A company purchases some capital equipment for $250,000. The equipment has a useful life of 10 years and a sa
Posted: Wed Jun 08, 2022 7:08 am
by answerhappygod
- 19 Given A Company Purchases Some Capital Equipment For 250 000 The Equipment Has A Useful Life Of 10 Years And A Sa 1 (27.23 KiB) Viewed 36 times
#19 Given: A
company purchases some capital equipment for $250,000. The equipment has a useful life of 10 years and a salvage value of $20,000. Straight line depreciation is used. Annual revenue generated from items manufactured by the equipment are $55,000 and annual expenses for raw materials and maintenance is $11,000. The
company pays 35% corporate taxes on net profits. Find: The annual profit after taxes is: (A) $7,350 (B) $23,000 (C) $36,560 (D) $44,000 Solution: