MBA684 Module 1 Graded Assignment (Available points=100pts)


Question Description:

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Please see the attached excel spreadsheet– this is for managerial accounting– deals with depreciation and I am completely lost. Each tab needs to be completed and all work must be shown. Any help is appreciated! Even if you can only do a couple tabs that would be awesome! M01_Assignment_Urbanowski_Taylor.xls MBA684 Module 1 Graded Assignment (Available points=100pts) *You are not allowed to do this assignment with other people. *You are not allowed to discuss this assignment with other people. *Show all of your work for any possible partial credit. *All necessary calculations should be done on this excel file to show how to get your outputs. Then, I can figure out the whole process as to how your answers were obtained. Therefore, simply showing numbers as a result does not earn any point. * Be sure to answer exactly what is asked in the problems. *Save your work file in the following format of the file name: M01_Assignment_Last Name_First Name.xls (x). Any submission through the email will not be accepted. *Absolutely….”One File Policy!!!” You have to pack all your answers into this excel file. If you need a word document to write your answer down, please incorporate MS word document into this excel file. Follow these operations to import MS document into the excel file: Insert (from menu bar)>Object…>choose “Word Document” from the drop-down list. I II III IV V VI VII 1 2 3 4 1 2 3 1 2 1 2 3 1 2 Available Points 6 6 6 6 7 7 7 6 6 6 6 6 6 6 6 7 100 S wiss Waste (S C W) ompany prepares a draft of its I/ Sfor 2007 at the end of its fiscal year. The depreciation expense is calculated from a plant used in treating sewage . S S company does not have any depreciable assets other than the plant. o, W The plant was purchased at the beginning of the fiscal year, 2007. The cost of the plant was $200,000. Also, an operation manager estimates its useful life as 10 years. The plant falls in 20-year 150% class in MAC for the tax purpose (Assume that this property class requires half-year convention). If necessary, RS refer the corporate income tax schedule to the following corporate tax schedule: Corp. Taxable Income At Least Tax But < Rate $ 50,000 15% 50,000 75,000 25% 75,000 100,000 34% 100,000 335,000 39% 22,250 + .39x(Inc > 100,000) 335,000 10,000,000 34% 113,900 + .34x(Inc > 335,000) 10,000,000 15,000,000 35% 3,400,000 + .35x(Inc > 10,000,000) 15,000,000 18,333,333 38% 5,150,000 + .38x(Inc > 15,000,000) 35% 6,416,667 + .35x(Inc > 18,333,333) $ 0 18,333,333 – Tax Calculation .15x(Inc > 0) $ 7,500 + .25x(Inc > 50,000) 13,750 + .34x(Inc > 75,000) Also, refer to the following tables for the MAC method. RS SW Co. I/S Sales Cost of Good Sold Gross Profit 2007 $1,000,000 366,000 634,000 Selling, General and Administrative Expenses Depreciation Expense* Earnings Before Tax(EBT)** 270,000 20,000 344,000 Tax Expense Net Income 116,960 227,040 *=SW employs Straight-Line Depreciation Method for the purpose of accounting **=Accounting Income Now, S C is going to prepare a tax report. Therefore, the company has to calculate W o. “taxable income” . The IRScode requires the firms to follow MAC Sas an acceptable R depreciation method for the tax purpose. The plant falls in 20-year 150% class. 1. Prepare the depreciation schedule for the next 10 years including 2007 (i.e., 2007-2016) using MACRS (Round up to the nearest(whole) dollar). Also, indicate when DB method switches to S-L method. Year Depreciation $ year 1(2007) year 2(2008) year 3(2009) year 4(2010) year 5(2011) year 6(2012) year 7(2013) year 8(2014) year 9(2015) year9(2015) year10(2016) . . . . . . year 21 (2027) 2. What is the taxable income for the year of 2007? 3. How much should the company pay for tax(i.e., tax payable) for 2007? 4. Suppose that the marginal tax rate of the company is 30%. If SW sells the plant at the end of 2009 for $180,000, how much tax should the company pay (or be refunded) for the transactio

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