PPE cost €900,000 and has an estimated useful life of 3 years to an estimated salvage value of zero. The company uses straight-line depreciation but the tax authority gives allowances in the following accelerated form: 2017 is €500,000 2018 is €300,000 2019 is €100,000 And company EBITDA was: 2017 €900,000 2018 €950,000 2019 €1,020,000 And the statutory tax rate is 40% and has an effective tax rate of 36%. Calculate the firms’ tax payable, tax expense, deferred tax liability recorded in the balance sheet each year end and tax base for the asset for each year.
PPE cost €900,000 and has an estimated useful life of 3 years to an estimated salvage value of zero. The company uses straight-line depreciation but the tax authority gives allowances in the following accelerated form: 2017 is €500,000 2018 is €300,000 2019 is €100,000 And company EBITDA was: 2017 €900,000 2018 €950,000 2019 €1,020,000 And the statutory tax rate is 40% and has an effective tax rate of 36%. Calculate the firms’ tax payable, tax expense, deferred tax liability recorded in the balance sheet each year end and tax base for the asset for each year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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PPE cost €900,000 and has an estimated useful life of 3 years to an estimated salvage value of zero. The company uses straight-line
2017 is €500,000 2018 is €300,000 2019 is €100,000
And company EBITDA was:
2017 €900,000 2018 €950,000 2019 €1,020,000
And the statutory tax rate is 40% and has an effective tax rate of 36%.
Calculate the firms’ tax payable,
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