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- DEPRECIATION AND INCOME TAX
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- AS A BUSINESS EXPENSE HIGH DEPRECIATION LOWERS PROFITS.
- HOWEVER, LOWER TAXES ARE A RESULT OF THIS. THUS, HIGHER
- DEPRECIATION MEANS HIGHER NET CASH FLOW WHICH WE DEFINE AS
- PROFITS BEFORE DEPRECIATION-INCOME TAXES.
- IN THIS PROGRAM THE USER INPUTS PROFITS BEFORE DEPRECIATION.
- THEN HE INPUTS VARIOUS POSSIBLE DEPRECIATIONS. NET CASH FLOW
- FOR EACH IS THEN COMPUTED. TAX SCHEDULES USED ARE:
- 17% OF FIRST $25000
- 20% OF NEXT $25000
- 30% OF NEXT $25000
- 40% OF NEXT $25000
- 46% OF ANY AMOUNT OVER $100000
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- PRESS ENTER TO BEGIN?
- INPUT PROFITS BEFORE DEPRECIATION? 123456
-
- ENTER DEPRECIATION AMOUNT & <ENTER> BELOW
-
- DEPRECIATION TAXES NET CASH FLOW !
- ? 6543
- $6543.00 $34529.98 $88926.02
- ? 4321
- $4321.00 $35552.10 $87903.90
- ? 9876
- $9876.00 $32996.80 $90459.20
- ? -1
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