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epreciation expense.

Brock Florist Company buys a new delivery truck for

$31,000. It is classified as a light-duty truck.

a.Calculate the depreciation schedule using a five-year life, straight-line depreciation, and the half-year convention for the first and last years.

b.Calculate the depreciation schedule using a five-year life and MACRS depreciation,

c.Compare the depreciation schedules from parts

(a) and (b) before and after taxes using a 30% tax rate. What do you notice about the difference between these two methods?

a.Using a five-year life, straight-line depreciation, and the half-year convention for the first and last years, what is the annual depreciation of the truck?

$(Round to the nearest dollar.)

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Cost recovery.

Brock Florist Company bought a new delivery truck for

$29,000. It was classified as a light-duty truck. The company sold its delivery truck after three years of service. If a five-year life and MACRS, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the truck (use a 30% tax rate) if

a.the sales price was $14,000?

b.the sales price was $9,000?

c.the sales price was $2,000?

a. If the sales price was $14,000, what would be the after-tax cash flow? and b? c?

$(Round to the nearest cent.)

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