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Business, 08.03.2021 20:00 trockout4868

A company purchased a new pizza oven for $12,676. It will work for 5 years and has no salvage value. The tax rate is 41%, and annual revenues are constant at $7,192. For financial reporting, the straight-line depreciation method is used, but for tax purposes depreciation is 35% of original cost in years 1 and 2 and the remaining 30% in Year 3. For this question ignore all expenses other than depreciation. What is the tax payable for year one? A. $2,535 $3,169
B. $4,657 $2,748
C. $2,748 $2,535

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A company purchased a new pizza oven for $12,676. It will work for 5 years and has no salvage value....
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