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Freedom Corporation acquired a fixed asset for $220,000. Its estimated life at time of purchase was 4 years, with no estimateTABLE 2 Present Value of Annuity of $1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 20% 25% 30% 1 0.962 0.952 0.943 0.93TABLE 1 Present Value of $1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 20% 25% 30% 1 0.962 0.952 0.943 0.935 0.926 0.9Required 1 Required 2 Required 3 What is the incremental present value of the tax benefits resulting from calculating depreci

i tried to answer 996,-996,292,-292,3201,-3201, all these were incorrect.

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Answer #1

Solution:

The Present Value of Incremental Tax Benefits is $ 3,777.

2,20,000 Cost of Acquisition Estimated Salvage Value Discount Rate Income Tax Rate 40% Depreciation using Year SLN DDB Increm

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