A machinery was brought in the years 2017 for $100,000. The life of the machinery is 10 years. The method of depreciation used was straight line to zero. Due to obsolescence, company wants to dispose the asset in the year 2020 and fetch the disposable value of $50,000. If the rate of tax is 30%, the net cash flow from salvage would be A. $56,000 B. $26,000 C. $14,000 D. $20000
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- A machinery was brought in the years 2017 for $100,000. The life of the machinery is 10 years. The method of depreciation used was straight line to zero. Due to obsolescence, company wants to dispose the asset in the year 2020 and fetch the disposable value of $50,000. If the rate of tax is 30%, the net cash flow from salvage would be A. $56,000 B. $26,000 C. $14,000 D. $20000A machinery was brought in the years 2017 for $100,000. The life of the machinery is 10 years. The method of depreciation used was straight line to zero. Due to obsolescence, company wants to dispose the asset in the year 2020 and fetch the disposable value of $50,000. If the rate of tax is 30%, the net cash flow from salvage would be $56,000 O $26,000 $20000 $14,000BITCO purchased a vehicle for $30,000 on July 1, 2020. BITCO's fiscal year ends on December 31, 2020. If the vehicle is expected to last 5 years and will have a salvage value of $2,000. Assuming straight-line depreciation, what amount of depreciation should be recognized for 2020? CAUTION: Pay attention to the dates. Group of answer choices None of the choices are correct. 5,600 3,000 6,000 2,800
- Question 1. Ltd purchased a machine on 1 July 2014 for $320,000. The machine is expected to have a useful life of 4 years (straight-line basis) and no residual value. The ATO allows the company to depreciate the asset over 5 years for taxation purposes. The profit before tax for the company for the year ending 30 June 2015 is $500,000. The tax rate is 30%. Required: A).Calculate the company's taxable profit and hence its tax payable for 2015. B).Determine the deferred tax liability or deferred tax asset that will result. C). Prepare the necessary journal entries on 30 June 2015.JME acquired a depreciable asset on January 1, 2014, for $60,000 cash. At that time JME estimated the asset would last 10 years and have no salvage value. During 2016, JME estimated the remaining life of the asset to be only three more years with a salvage value of $3,000. If JME uses straight-line depreciation, what is the depreciation for 2016? a. $ 6,000 b. $12,000 c. $15,000 d. $16,0001 May 2015, your company acquired a machine at a cost of $300,000. This machine has an expected a useful life of 20 years in normal conditions, and a residual amount of $10,000. The financial year ends on 30thJune every year. Assume the tax rate is 30%. For tax purposes the asset is depreciated at 10% per annum with no residual value. i)Assume that the managers decided to use the machine more intensively from 1 January to June of 2017. This intensity reduced the useful life of the asset by 20%. Preparethe relevant journal entries for the year ended on 30 June 2017.
- What is the after-tax salvage value of a 3-year MACRS machine with the $10,000 purchase price if it is sold after 3 years at a salvage value of $500? The annual depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%, and the tax rate is 25%. A) $935.25 B) $741 C) $560.25 D) -$60.25 E) -$241An asset purchased today at a cost of $50,000 is depreciated straight-line down to value 0 over a period of 5 years, for tax purposes. Suppose the asset is sold at a price of $30,000 at the end of 2 years. What is the after-tax cash inflow from salvage (selling the asset), assuming a tax rate of 40%? a) $30,000 b) $26,000 c) $38,000 d) $20,000 e) None of the aboveBennie Razor Company has decided to sell one of its old manufacturing machines on January 1, 2020. The machine was purchased for $80,000 on January 1, 2016, and was depreciated on a straight-line basis for 10 years assuming no salvage value. If the machine was sold for $26,000, what was the amount of the gain or loss recorded at the time of the sale a. $22,000 loss O b. $26,000 gain c. $32,000 gain O d. $54,000 loss
- Current Attempt in Progress In 2025, Sheffield Corporation discovered that equipment purchased on January 1, 2023, for $45,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Sheffield's 2025 journal entry to correct the error. Sheffield uses straight-line depreciation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before crèdit entries.) Account Titles and Explanation Debit Credit 000What is the salvage cash flow for a piece of equipment given the following information. The equipment had an initial book value of $226,000. The asset was set up to be depreciated straight-line for 8 years to a book value of 0. The equipment can be sold today for $69,000. Depreciation has been taken for 4 years. The firms tax rate is 29%Popeye Company purchased a machine for $340,000 on January 1, 2020. Popeye depreciates machines of this type by the straight-line method over a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Popeye discovered the error in 2021. What amount should Popeye record as depreciation expense for 2021? The tax rate is 25%. Multiple Choice $102,000. $136,000. $51,000. $68,000.