Results 1 to 2 of 2

Math Help - Shortcut calculation for tax savings on capital expenditure

  1. #1
    Newbie
    Joined
    Apr 2010
    Posts
    1

    Shortcut calculation for tax savings on capital expenditure

    Hi

    Say,

    Machinery = $400,000
    Useful life = 4 years
    Capital Allowance Rate = 25%
    Corporation Tax Rate = 35%
    Scrap Value = $5,000

    Do you know any short cut that being used to calculate the total tax savings amount?

    I only know till certain steps. ie 40,000 x 0.25 x 0.35 x 0.75 x 0.75 x....?

    Will appreciate the help

    Thanks
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Joined
    Dec 2007
    From
    Ottawa, Canada
    Posts
    3,069
    Thanks
    65
    Quote Originally Posted by mingali View Post
    Machinery = $400,000
    Useful life = 4 years
    Capital Allowance Rate = 25%
    Corporation Tax Rate = 35%
    Scrap Value = $5,000

    Do you know any short cut that being used to calculate the total tax savings amount?

    I only know till certain steps. ie 40,000 x 0.25 x 0.35 x 0.75 x 0.75 x....?
    Not sure what you're asking...
    BUT seems evident that TOTAL savings (4 years)
    will be 400000-5000 = 395000 * .35 = $138,250
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Replies: 0
    Last Post: November 28th 2011, 10:37 PM
  2. Replies: 3
    Last Post: May 4th 2011, 08:56 AM
  3. interest savings
    Posted in the Business Math Forum
    Replies: 4
    Last Post: April 15th 2011, 07:35 AM
  4. Savings & Inflation
    Posted in the Algebra Forum
    Replies: 1
    Last Post: January 24th 2009, 02:19 PM

Search Tags


/mathhelpforum @mathhelpforum