On Jan 2 year 1, X Co purchased a machine for 70000 USD (5 year useful life and salvage value 10,000). Depreciated using SLM for financial statement purpose. For tax purpose, depreciation exp was 25K in year 1 and 20,000 for Y2. X's Year 2 book income before income tax and dep exp was 100,000 and its tax rate is 30%. If X had made no estimated tax payments during Year 2, what amount of current income tax liability would X report in its Dec 31 Y2 Balance Sheeta.26400b.22500c.25800d.24000

Multiple Choice QuestionAssume straight-line depreciation. A company plans to purchase machinery costing $1,000,000 with salvage value of $200,000 after 4 years. Annual income is expected to be $40,000 during the 4 years. Calculate the accounting rate of return. Round your answer to the nearest tenth of a percent.Multiple choice question.6.7%15.0%13.3%5.0%

Last year Cole Furnaces had $5 million in operating income (EBIT). The companyhad a net depreciation expense of $1 million and an interest expense of $1 million; itscorporate tax rate was 40%. The company has $14 million in operating current assetsand $4 million in operating current liabilities; it has $15 million in net plant andequipment. It estimates that it has an after-tax cost of capital of 10%. Assume thatCole’s only noncash item was depreciation.a. What was the company’s net income for the year?b. What was the company’s net cash flow?c. What was the company’s net operating profit after taxes (NOPAT)?d. Calculate net operating working capital and total net operating capital for thecurrent year.e. If total net operating capital in the previous year was $24 million, what was thecompany’s free cash flow (FCF) for the year?f. What was the company’s Economic Value Added (EVA)?

\[ \text { SL Depreciation: } D_{S L}=\frac{(B-S)}{N} \] DDB Depreciation:DDB t​ = N2​ BV t−1​ UOP Depreciation:D t​ =(B−S)  Total Production  Production at year t​ Combined Tax Rate=State Tax + Federal Tax(1−State Tax)Question 1-A factory purchased a new machine with an initial cost of$300,000. The machine has a useful life of 6 years. The salvage value is$60,000. (1.5 points) A) Calculate the depreciation and the book value for the first 3 years using Straight-Line Depreciation. B) Calculate the depreciation and the book value for the first 3 years using Double Decline Balance Depreciation.

A company purchases machinery for $100,000 with an estimated useful life of 5 years and no residual value. If the company uses the straight-line depreciation method, what is the annual depreciation expense?(5 Points)$10,000$20,000$25,000$30,000

Machinery is purchased for $140,000. It is estimated that it has a useful life of 5 years and a residual value of $20,000. Using the straight-line method, calculate the amount of annual depreciation to be charged.$28,000$14,000$24,000$12,000