The depreciation of the plant is 50000 per year assuming a


A new production plant is estimated to generate revenues annually of $100,000. The taxes on the land are 4,000 per year. The expense of making the widgets is $2,000 per month based on past experience. Due to efficiency, this was reduced 10%. The depreciation of the plant is 50,000 per year. Assuming a corporate tax rate of 40%, what is the net income annually for the plant?
A) $13,040 B) $13,200 C) $14,640 D) $26,520

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The depreciation of the plant is 50000 per year assuming a
Reference No:- TGS0643776

Expected delivery within 24 Hours