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?