How much tax savings will you have in each of the years

Reference no: EM132168897

Question: You recently bought a mini-supercomputer for $10,000 to allow for tracking and analysis of realtime changes in stock and bond prices. Assume you plan on spending half your time tending to the stock market with this computer and the other half as personal use. Also assume you can depreciate your computer by 20% per year over 5 years (straight line rate). How much tax savings will you have in each of those 5 years, if any? Use a tax rate of 28%.

Reference no: EM132168897

Questions Cloud

Determine the most likely valuation method a venture : FIN 317: Determine the most likely valuation method a venture capitalist would use to value your business venture.

Which alternative has the lower eac and by how much : LoTech Welding can purchase a machine for $175,000 and depreciate it as 5-year MACRS property. Annual maintenance would be $9800, and its salvage value.

Determine which option is preferred : VML Industries has need of specialized yarn manufacturing equipment for operations over the next 3 years. The firm could buy the machinery for $95,000.

Find the breakeven rate of return of purchase versus lease : A plant can be purchased for $1,000,000 or it can be leased for $200,000 per year. The annual income is expected to be $800,000 with the annual operating cost.

How much tax savings will you have in each of the years : You recently bought a mini-supercomputer for $10,000 to allow for tracking and analysis of realtime changes in stock and bond prices.

What is the optimal quantity that the monopolist : What is the optimal quantity that the monopolist will charge to maximize its profits?

What the businessman would pay for the bond : A prosperous businessman is considering two alternative investments in bonds. In both cases the first interest payment would be received.

Relationships among factors of three dimensions : In s-c-p paradigm, identify three relationships among factors of the three dimensions of structure, conduct, and performance and provide rationales

Public influence company revenue : How does real gross domestic product and federal debt held by the public influence company revenue?

User Account

All Pages