EOY BTCF END OF YR DEPRECIATION TAXABLE CASH FLOW ATCF BOOK VALUE DEDUCTION INCO
ID: 1100729 • Letter: E
Question
EOY
BTCF
END OF YR
DEPRECIATION
TAXABLE
CASH FLOW
ATCF
BOOK VALUE
DEDUCTION
INCOME
FROM TAX
0
-180,000
-180,000
1
46,000
136,250
43,750
2,250
-788
45,213
2
-10,000
92,500
43,750
-53,750
18,813
8,813
3
?
48,750
43,750
-7,750
2,713
?
4
46,000
5,000
43,750
2,250
-788
45,213
*4
4,000
-1,000
-350
3,650
*SOLD FOR $4,000
PW=
?
MARR=
12%
PW=
?
Note well: For this problem enter all $ values with a precision to nearest dollar with no commas or dollar signs
Depreciation Method (SL or DDB or GDS or ADS)=
PW of BTCF=
PW of AFCF=
Estimate of MV EOY 0 =
Actual salvage value =
Yr 3 BTCF =
Yr 3 ATCF =
EOY
BTCF
END OF YR
DEPRECIATION
TAXABLE
CASH FLOW
ATCF
BOOK VALUE
DEDUCTION
INCOME
FROM TAX
0
-180,000
-180,000
1
46,000
136,250
43,750
2,250
-788
45,213
2
-10,000
92,500
43,750
-53,750
18,813
8,813
3
?
48,750
43,750
-7,750
2,713
?
4
46,000
5,000
43,750
2,250
-788
45,213
*4
4,000
-1,000
-350
3,650
*SOLD FOR $4,000
PW=
?
MARR=
12%
PW=
?
Explanation / Answer
Depreciation Method (SL or DDB or GDS or ADS)= SL
PW of BTCF=-$85,942
PW of AFCF=-$73999
Estimate of MV EOY 0 =180,000
Actual salvage value =$180,000 - 4*43,750= 5000
Yr 3 BTCF =$41000
Yr 3 ATCF =$38713
EOY BTCF END OF YR DEPRECIATION TAXABLE CASH FLOW ATCF BOOK VALUE DEDUCTION INCOME FROM TAX 0 -180,000 -180,000 1 46,000 136,250 43,750 2,250 -788 45213 2 -10,000 92,500 43,750 -53,750 18,813 8813 3 41,000 48,750 43,750 -7,750 2,713 38713 4 46,000 5,000 43,750 2,250 -788 45213 *4 4,000 -1,000 -350 3,650 *SOLD FOR $4,000 PW= ($85,942) MARR= 12% PW= -73999Related Questions
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