1. Shockers Corp. acquires an asset for $200,000 which they estimate 3 years as the service life. For any taxable income, Shockers Corp uses a tax rate of 50%. a)Given double declining balance depreciation method, calculate the deprecation rateand then the depreciation amounts for year 1 through 3. 0 1 2 3 BV(t) D(t) How much tax will this corporation pay and what will be the ATCF for each of the following scenarios for the given year? b) After 3 years the asset is sold for $80,000. c) After 2 years the asset is sold for $300,000. d) After one year the asset is sold for $20,000
1. Shockers Corp. acquires an asset for $200,000 which they estimate 3 years as the service life. For any taxable income, Shockers Corp uses a tax rate of 50%. a)Given double declining balance depreciation method, calculate the deprecation rateand then the depreciation amounts for year 1 through 3. 0 1 2 3 BV(t) D(t) How much tax will this corporation pay and what will be the ATCF for each of the following scenarios for the given year? b) After 3 years the asset is sold for $80,000. c) After 2 years the asset is sold for $300,000. d) After one year the asset is sold for $20,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 11P
Related questions
Question
Shockers Corp. acquires an asset for $200,000 which they estimate 3 years as the service life. For any taxable income, Shockers Corp uses a tax rate of 50%. a)Given double declining balance depreciation method, calculate the deprecation rateand then the depreciation amounts for year 1 through 3. How much tax will this corporation pay and what will be the ATCF for each of the following scenarios for the given year?
b) After 3 years the asset is sold for$80,000?
c) After 2 years the asset is sold for $300,000?
d) After one year the asset is sold for $20,000?
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