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A fishing boat captain considers buying a new fishing boat for $60,000. The boat will last an estimated 15 years, be depreciated with the straight-line method, and have no salvage value. The captains annual gross income from fishing operations is estimated at $432,000. Fishing season is assumed to last 6 months with 30 days per month, 8 hours per day. Costs for maintaining and running the fishing boat are

Maintenance		$20/day
Gasoline	$180/day
Labor (total crew is captain plus mate)	$16/hr
Storage (6 months off season)	$1000/6 months

The effective annual interest rate is 8%, and income tax brackets are given in the table below.

Taxable income	Income tax
Not over $50,000	15%
$50,000 - $75,000	$7500 + 25% over $50,000
$75,000 - $100,000	$13,750 + 34% over $75,000
$100,000 - $335,000	$22,250 + 39% over $100,000
Over $335,000	34% of total taxable income

What is the captains estimated net income before taxes for year 1?

Group of answer choices

$310,960

$311,960

$371,960

$408,960

What is the captains estimated net income after taxes for year 1?

Group of answer choices

$145,894

$182,854

$205,894

$242,854

What is the captains estimated net income after taxes for year 1 if MACRS GDS depreciation method is being used instead of SL depreciation?

Group of answer choices

$241,534

$243,514

$246,514

$247,534

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