Antinoro Corporation has provided the following information concerning a capital budgeting project:
The company uses straight-line depreciation on all equipment.
The income tax expense in year 2 is:
A) $3,500
B) $21,000
C) $42,000
D) $24,500

Question

Antinoro Corporation has provided the following information concerning a capital budgeting project:
 The company uses straight-line depreciation on all equipment.
The income tax expense in year 2 is:
A) $3,500 
B) $21,000 
C) $42,000 
D) $24,500

Quizplus · Accepted Answer

Depreciation expense = (Original cost - Salvage value) ÷ Useful life
= ($200,000 - $0) ÷ 4 years = $50,000 per year
 11ea7761_15d1_1c06_81a5_5180cb1b7fcc_TB2580_00

Antinoro Corporation Has Provided the Following Information Concerning a Capital