2 Simply Storage warehouse company bought land for 500000 On

2 Simply Storage warehouse company bought land for $500,000. On this land they buil a ouse for $500,000. May. The beverage compan a Complete the MACRS depreciation table for the first 4 years

Solution

1st year depreciation

For Warehouse=ajusted basis*rate

500000*20%=100000

For building same amount of deprciation

so total depreciation will be 200000(100000+100000)

2 year depreciation

Warehouse

400000*32%=160000

For building same amount of deprciation

so total depreciation will be 320000(160000+160000)

3 year Warehouse

240000*19.2%=96000

For building same amount of deprciation

so total depreciation will be 192000(96000+96000)

4 year depreciation

For Warehouse

144000*11.2%=57600

For building same amount of deprciation

so total depreciation will be 115200(57600+57600)

B) Calculation of taxable income

gross income=11000*12=132000

federal tax=23.089.50

state tax=0

taxable income=120000

socila security=7960.80

medicare=1914

total fica=9874.50

take home=99035.70

Caculation of corporate tax

19%of taxable income

120000*19%=25080