A manufacturing company bought a truck for $35 000. After 10 years the truck's salvage value will be $5 000. The truck is expected to produce a revenue of $10 000 per year, while maintenance costs are expected to be $1 000 per year. If the annual interest rate is 10%, the corporate tax rate is 35% and straight-line depreciation is applied, what amount of taxes associated with the truck's operation will the company pay in the first year?

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The Answer of A manufacturing company bought a truck for $35 000. After 10 years the truck's salvage value will be $5 000. The truck is expected to produce a revenue of $10 000 per year, while maintenance costs are expected to be $1 000 per year. If the annual interest rate is 10%, the corporate tax rate is 35% and straight-line depreciation is applied, what amount of taxes associated with the truck's operation will the company pay in the first year?

A Manufacturing Company Bought a Truck for $35 000