Ask Question
BusinessBusiness
16 July, 01:51

A company had sales last year of $3,000,000. They had operating expenses of $1,600,000. They bought a machine that cost $500,000 that has a life of 10 years and a salvage value of $15,000. Based on MACRS what was their Taxable Income?

+3
Answers (1)
  1. 16 July, 02:16
    0
    The answer is $1,350000

    Explanation:

    Solution

    Given that:

    Company sales of last year = $3,000,000

    Operating expenses = $1,600,000

    The purchase of machine = $500,000

    Life of machine = 10 years

    The salvage value = $15,000

    Now,

    we find the Taxable income which is given below:

    Taxable income = sales - operating expenses - depreciation in year 1

    Taxable income = $3,000000 - $1,600000 - 10% * $500,000

    Therefore the atxable income is = $1,350000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company had sales last year of $3,000,000. They had operating expenses of $1,600,000. They bought a machine that cost $500,000 that has a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On December 31,2018, Infinity Inc. records an adjusting entry to accrue interest on a note. On January 31,2019, Infinity receives a check for $4,680, which represents two months of accumulated interest on the note.
Answers (1)
Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800).
Answers (1)
During market testing, Sensation Cosmetics (SC) realized that the cosmetics industry was dominated by multiple, well-established brands. These brands mostly sold their products in exclusive outlets and departmental stores.
Answers (1)
A greenfield investment is the best choice when: a. government mandated benefits are high b. the investor has a lack of capital c. there's a lack of suitable potential employees d. sustainability is at the core of the corporate mission e.
Answers (1)
Which of the following is not a necessary condition for price discrimination to hold? The seller must be a price searcher. The seller must be able to distinguish between customers willing to pay different prices.
Answers (1)
New Questions in Business
Suppose the risk-free return is 4%. The beta of a managed portfolio is 1.2, the alpha is 1%, and the average return is 14%.
Answers (1)
If fixed costs are $1,291,000, the unit selling price is $238, and the unit variable costs are $105, what is the amount of sales in units (rounded to a whole number) required to realize an operating income of $217,000? a. 5,424 unitsb. 11,338 unitsc.
Answers (1)
Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period.
Answers (1)
Nieland Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $288,000 and a remaining useful life of 8 years.
Answers (1)
Which of the following is a disadvantage of a partnership? a. potential conflicts among partners c. access to fewer resources than a sole proprietorship b. limited liability d. specialization
Answers (1)
Home » Business » A company had sales last year of $3,000,000. They had operating expenses of $1,600,000. They bought a machine that cost $500,000 that has a life of 10 years and a salvage value of $15,000. Based on MACRS what was their Taxable Income?
Sign Up Forgot Password?