Company decides to work on the project

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"The Columbus Electrical Company expects to have an annual taxable income of $692,000 from its residential accounts over the next two years. The company is bidding on a two-year wiring service for a large apartment complex. This commercial service requires the purchase of a new truck equipped with wire-pulling tools at a cost of $53,000. The equipment falls into the MACRS five-years class and will be kept for 10 years. The project will bring an additional annual revenue of $227,000, but it is expected to incur additional annual operating costs of $113,000. Using the Corporate Tax Schedule on Table 9.12, what is the total amount that Columbus Electrical will have to pay in taxes in year 2 if the company decides to work on the project?"

Reference no: EM132055946

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