prepay_an_expense - Current deduction saves taxes now...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Should you prepay an expense? enter information in yellow cells Tax year ending: December 31, 2009 Due date: April 10, 2010 Prepayment period in days: 100 Amount: $1,000.00 Tax rate: 30% Discount rate: 8.00% Net benefit of early deduction:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Current deduction saves taxes now 300.00 Give up deduction next year (277.78) 22.22 Pay out money now 1,000.00 Avoid payment (978.55) (21.45) 0.77 Net cost of making early payment: Net benefit (cost)...
View Full Document

This note was uploaded on 03/03/2010 for the course ACG 6845 taught by Professor Kelliher during the Spring '09 term at University of Central Florida.

Ask a homework question - tutors are online