What is the net income annually for the plant

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A new production plant is estimated to generate revenues annually of $100,000. The taxes on the land are 4,000 per year. The expense of making the widgets is $2,000 per month based on past experience. Due to efficiency, this was reduced 10%. The depreciation of the plant is 50,000 per year. Assuming a corporate tax rate of 40%, what is the net income annually for the plant?
A) $13,040 B) $13,200 C) $14,640 D) $26,520

Reference no: EM13305085

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