Determine total depreciation to be taken over useful life

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Futabatei Enterprises purchased a delivery truck on January 1, 2014, at a cost of $44,550. The truck has a useful life of 7 years with an estimated salvage value of $9,900. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2014 and 2015 the company has revenues of $330,000 and operating expenses (excluding depreciation) of $214,500. Incorrect answer. Your answer is incorrect. Try again. Compute income before income taxes for 2014 and 2015. 2014 2015 Income before income taxes $Entry field with incorrect answer $Entry field with incorrect answer SHOW SOLUTION LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Compute taxable income for 2014 and 2015. (Round answers to 0 decimal places, e.g. 45,892.) Taxable income for 2014 $Entry field with incorrect answer Taxable income for 2015 $Entry field with incorrect answer SHOW SOLUTION LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes. Book purposes $Entry field with incorrect answer Tax purposes $Entry field with incorrect answer

Reference no: EM13942941

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Determine total depreciation to be taken over useful life : Futabatei Enterprises purchased a delivery truck on January 1, 2014, at a cost of $44,550. The truck has a useful life of 7 years with an estimated salvage value of $9,900. The straight-line method is used for book purposes. Determine the total depre..

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