Monday, December 19, 2011

Using straight line depreciation, what are the taxable earnings?

Acme Industries had sales last year of 12,000,000. They had expenses of 9,755,000. They purchase several pieces of new equipment during the year that : Cost $3,000,000 to purchase, Had $1,100,000 related costs to set up install etc. Has a salvage value of 750,000 in 5 years.

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