单选题 A firm is purchasing a new file server for $ 680000 with a 4-year expected life and a salvage value of $ 50000. It is expected that the new server will generate an additional $200000 in revenue each year. The firm will use the straight line method to depreciate the server for financial reporting, but the sum-of-year"s digits (SYD) method for tax purposes. How much tax will be payable in year two, assuming a 35 percent tax rate?

A、 $ 3850.
B、 -$ 1400.
C、 $ 14875.

【正确答案】 A

【答案解析】Income for each year is expected to be $ 200000. The second year"s depreciation will be ($680000-$50000)×0.3=$189000, so the taxable income will be $11000 and the tax will be $11000×0.35=$3850.