Problem
A computer-controlled milling machine will cost Ajax Manufacturing $65,000 to purchase plus $4700 to install.
(a) If the machine would have a salvage value of $6600 at EOY 20, how much could Ajax charge annually to depreciation of this equipment? Ajax uses straight-line depreciation.
(b) What is the book value of the machine at EOY 3?
(c) Ajax Manufacturing earns a net profit before tax (also called a taxable income) of $28,800,000. How much tax would Ajax owe for this year? Contributed by Paul R. McCright, University of South Florida
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.