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MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
A firm purchased $35,000 in office furniture this year. The firm has $150,000 in earnings before depreciation and taxes each year, and the tax obligation is $55,000 each year.
a) What MACRS schedule should be used?
b) Using the half-year convention, over how many years will the furniture be depreciated?
c) What is the difference between the accounting flows and the cash flows for the first year?
d) What is the difference between the accounting flows and the cash flows for the second year?
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