# HW-Chap-12 - Total Tax = \$2,250 \$6,450 = \$8,700 12-16 PW of...

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Engineering Economy ENGR 300 Chapter 12 12-5 Proprietorship Exemption = \$2,750 Standard Deduction = \$4,300 Taxable Income = \$65,000 − \$2,750 − \$4,300 = \$57,950 Tax = \$3,697.50 + (\$57,950 − \$24,650) (0.28) = \$13,021.50 Corporation Jane’s Tax on \$22,000 Exemption = \$2,700 Standard Deduction = \$4,300 Taxable Income = \$22,000 − \$2,700 − \$4,300 = \$15,000 Tax = 0.15 (\$15,000) = \$2,250 Corporate Tax on \$43,000 taxable income: Tax = 0.14 (\$43,000) = \$6,450

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Unformatted text preview: Total Tax = \$2,250 + \$6,450 = \$8,700 12-16 PW of Benefits – PW of Cost = 0 \$19,000 (P/A, i%, 5) − \$3,000 (P/G, i%, 5) + \$5,000 (P/F, i%, 5) − \$50,000 = 0 Try i = 15% \$19,000 (3.352) − \$3,000 (5.775) + \$5,000 (0.4972) − \$50,000 = −\$1,151 Try i = 12% \$19,000 (3.605) − \$3,000 (6.397) + \$5,000 (0.5674) − \$50,000 = +\$2,141 Using linear interpolation, find that i = 14%. Engineering Economy ENGR 300 Chapter 12...
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## This note was uploaded on 04/18/2011 for the course ENGINEER 300 taught by Professor Kashayar during the Spring '11 term at California State University Los Angeles .

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HW-Chap-12 - Total Tax = \$2,250 \$6,450 = \$8,700 12-16 PW of...

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