Three years ago, your firm bought a new machine for $3,000. The machine was depreciated on a straight line basis over a 6 year life to a salvage value of zero. Today, your company will sell the machine for $3,000. The tax rate is 28%. What are the after tax proceeds from the sale? Answer to 2 decimals.
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- Two years ago, your firm bought a new machine for $5,000. The machine was depreciated on a MACRS 3 year schedule. Today, your company will sell the machine for $4,000. The tax rate is 33%. What are the after tax proceeds from the sale? Answer to 2 decimals, for example 105.21. MACRS 3 Year Year Amount 1 33.33% 2 44.45% 3 14.81% 4 7.41%Sandhill Corporation just purchased computing equipment for $22,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $14,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, e.g. 15.25.)A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $7980 $8136 O No taxis to be paid
- A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $10,000. The firm that owns the machine no longer has a need for it, but a buyer is now willing to pay $60,000 for it because machines of this type are no longer available. If the tax rate is 23%, what tax will be owed on the transaction? EditConsider an asset that costs $420,000 and is depreciated straight-line to zero over a 7-year economic life. What is the after-tax salvage value if the asset is sold after 4 years for $240,000 and the corporate tax rate is 22%.-Suppose a 5-year piece of equipment purchased for 500,000 is sold at the end of year 4 after taking four years of straight- line depreciation. Assume that the equipment is sold for 200,000 and the tax rate is 35%. What is the book value? Is there tax savings on the sale? Is there tax effect?
- 13) year MACRS approach. However, after 3 years your company sold the machinery for $50,000. Compute the after-tax gains or losses your company makes on this sale. Assume a tax rate of 21%. Your company bought a piece of machinery for $80,000, and depreciated it using a 7-You decide to sell a price of equipment for $5,000. It had been depreciated to $3,000. The original purchase price was $6,000. Your tax rate is 20%. What are your after-tax proceeds from the sale? A) $400 B) $600 C) $5,000 D) $4,600 E) $5,400Troy Industries purchased a new machine 3 year(s) ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule.. Assume 21% ordinary and capital gains tax rates. What is the book value of the machine? b. Calculate the firm's tax liability for each case if it sold the machine for each of the following amounts: $ 100,000, 56,000 , 23,200 and $ 15,000
- Troy Industries purchased a new machine 3 year(s) ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule.. Assume 21% ordinary and capital gains tax rates. What is the book value of the machine? b. Calculate the firm's tax liability for each case if it sold the machine for each of the following amounts: $ 100,000, 56,000, 23,200 and $ 15,000A cutting edge metallic 3D printer is purchased by Helix Corp for $160000. It is expected to last 9 years and have a salvage value of $9500. It is considered a MACRS 7 year property. It will produce $84000 in net revenue each year during its life. Corporate income taxes are 0.30 and the after-tax MARR is 0.08. What is the PW of the CFAT for year 2? Your Answer: AnswerIU purchased a super computer for $15,000. This computer qualifies for 5-year recovery under MACRS. Use the Table provided in lectures. IU has a tax rate of 20%. Assume that the super computer is sold for $4,000 at the end of year 4. What is the after- tax salvage value? O $2,765.21 O $1,877.00 O $3,718.40 O $2,765.34