Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Noisy Firm Corp a maker of stereos expects to report pretax income of $60000 this year The...

Noisy Firm Corp a maker of stereos expects to report pretax income of $60000 this year The companyAc€cs CFO is considering purchase of a new robot The robot will have an equipment cost of

Noisy Firm Corp., a maker of stereos, expects to report pretax income of $60,000 this year. The companyAc€?cs CFO is considering purchase of a new robot. The robot will have an equipment cost of $10,000, and will cost $2,500 to install. It will have a cost recovery of 5 years and will be depreciated for tax purposes using the MACRS schedule. a. If the firm purchases the robot before year end, what depreciation expense will it claim this year (use the MARCS table)? b. If the firm reduces its reported income by the amount of the depreciation expense calculated in a above, what tax savings will result?

Rounded Depreciation Percentages by Recovery Year Using MACRS for Equipment % by Recovery Year

Recovery Year:                         5 Years:

------------------------------------------------------

1                                                 20%

2                                                 32

3                                                 19

4                                                 12

5                                                 12

6                                                 5

-----------------------------------------------------

Total                                           100%

 

May 20 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions