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K In order to determine the after-tax EUAC of a factory equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 21%, answer the following question Year BTCF Depreciation Taxable Income Income Taxes ATCF 0 - $13,000 1 - $3,200 $1,300 2 - $3,200 $2,340 3 - $3,200 $1,872 3 $4,550 Calculate the income tax amount for year 2 (note that it is a tax credit, since the BTCF is a cost) OA. $491 OB. $672 OC. $1,163 OD. $1,367

K In order to determine the after-tax EUAC of a factory equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 21%, answer the following question Year BTCF Depreciation Taxable Income Income Taxes ATCF 0 - $13,000 1 - $3,200 $1,300 2 - $3,200 $2,340 3 - $3,200 $1,872 3 $4,550 Calculate the income tax amount for year 2 (note that it is a tax credit, since the BTCF is a cost) OA. $491 OB. $672 OC. $1,163 OD. $1,367

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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K In order to determine the after-tax EUAC of a factory equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 21%, answer the following question Year BTCF Depreciation Taxable Income Income Taxes ATCF 0 - $13,000 1 - $3,200 $1,300 2 - $3,200 $2,340 3 - $3,200 $1,872 3 $4,550 Calculate the income tax amount for year 2 (note that it is a tax credit, since the BTCF is a cost) OA. $491 OB. $672 OC. $1,163 OD. $1,367
Transcribed Image Text:K In order to determine the after-tax EUAC of a factory equipment, the following analysis table was prepared. Based on the partial information on the table, and using an income tax rate of 21%, answer the following question Year BTCF Depreciation Taxable Income Income Taxes ATCF 0 - $13,000 1 - $3,200 $1,300 2 - $3,200 $2,340 3 - $3,200 $1,872 3 $4,550 Calculate the income tax amount for year 2 (note that it is a tax credit, since the BTCF is a cost) OA. $491 OB. $672 OC. $1,163 OD. $1,367
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