TJ Industries has revenue of $400,000 and expenses of $250,000. The depreciation cost is $80,000 and marginal tax rate is 35%. Calculate depreciation tax shield Group of answer choices 33,000 25,000 28000 15470
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million. It had $2.0 million of interest expense, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its charge for depreciation and amortization?Griffin's goat farm, Inc has sales of $666,000 costs of $328,000, depreciation expenses of $72,000 interest expense $46,000 and a tax rate of 24 percent. what is the taxable income? a. $167,200 b. 220,000 c. 266000 d. 52800 e. 292000
- A company acquired a bus for $110,000, which had a $3,000 delivery fee, $2,000/year maintenance cost, and contributes $40,000/year of revenue. The bus was depreciated according to GDS with an effective tax rate of 21%. What is the economic value added in year 5 with after-tax MARR being 10%?A firm purchased equipment at a total cost of $287,000, which was depreciated straight - line over seven years. After five years, the equipment was sold for $98,900. What is the ATCF at a tax rate of 34 percent? Multiple choice question. $93, 154 $76,227 $84,315 $110,054Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax purposes as follows: year 1, $329,000; year 2, $189,000; and in each of years 3 through 5, $109,000 per year. A 10 percent discount rate is appropriate for this asset, and the company’s tax rate is 20 percent. Required: Compute the present value of the tax shield resulting from depreciation. 2. Compute the present value of the tax shield from depreciation assuming straight-line depreciation ($169,000 per year).
- Oberon Corp is considering a project with annual depreciation tax shield of $551,250. The company's tax rate is 21%. Depreciation expense is closest to: A. $2,625,000. B. $697,785. C. $667,013.a piece of machinery cost $500.tax depreciation to date has amounted to $200 and depreciation charged in the financial statements to date is $100 the rate of tax is 30% ? what is the deferred tax liability in relation to this asset?Watson Tax Planning Service has the following plant assets: Communications Equipment: Cost, $6,960 with useful life of eight years; Furniture: Cost, $18,000 with useful life of 12 years; and Computer: Cost, $12,400 with useful life of four years. (Assume residual value of all the assets is zero.) Watson's monthly depreciation expense calculated using the straightline method is ________. (Round any intermediate calculations to two decimal places, and your final answer to the nearest cent.) A. $258.33 B. $72.50 C. $125.00 D. $455.83
- An asset that was originally purchased for $60,818 is being depreciated straight-line over its useful life. 83% of the asset has been depreciated. The asset can be sold for $35,191. If the company's tax rate is 34%, what is the after-tax salvage of this asset? Express your answer to the nearest whole number.CALCULATE DEPRECIATION ON A TRUCK WITH A NET BOOK VALUE OF 350,000 FOR 400,000. WITH A TAX WRITTEN DOEN VALUE OF $300,000Macaron Corporation is making a $96,400 investment in equipment with a 5-year life. The company uses the straight-line method of depreciation and has a tax rate of 20 percent. The company’s required rate of return is 10 percent.What is the present value of the tax savings related to depreciation of the equipment? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal place, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) The present value $enter present value in dollars rounded to 0 decimal place
