1. The balance sheet of a firm shows beginning net fixed assets of $360,000 and ending net fixed assets of $460,000. The depreciation expense for the year is $50,000. What is the amount of the net capital spending for the year? $100,000 $120,000 $150,000 $180,000
2. A firm has a marginal tax rate of 35% and an average tax rate of 25%. If the firm earns $200,000 in taxable income, how much will they owe in taxes?_______
$37,500
$62,500
$70,000
$50,000