Homework Answers
1. Book value of the equipment at the time of sale = $ 4,608.
| Depreciation Year 1 | $ 1,000 |
| Depreciation Year 2 | 1,800 |
| Depreciation Year 3 | 1,440 |
| Depreciation Year 4 | 1,152 |
| Total depreciation taken in 4 years | $ 5,392 |
Book value = $ 10,000 - $ 5,392 = $ 4,608
2. Gain on sale of equipment = Sale Proceeds - Book Value = $ 7,000 - $ 4,608 = $ 2,392
Tax on gain @ 30 % = $ 2,392 * 30 % = $ 717.60 or $ 718
Net cash received on sale of equipment = $ 7,000 - $ 718 = $ 6,282
Add Answer to:
You bought a 10-year equipment for $10,000 for your business. After using MACRS Table A-1 shown...
You bought a 10-year equipment for $10,000 for your business After using MACRS Table A-1 shown...
You bought a 10-year equipment for $10,000 for your business After using MACRS Table A-1 shown below, you took depreciations for 4 years and then you sold your equipment for $7,000. Assuming your income tax rate is 30%. Answer the following 2 questions: 1. How much is the book value of the equipment when you sold it? (20 points) 2.How much cash did you receive after paying tax when selling this equipment? (15 points) MACRS Hal Year Comvention TABLE 1...
Crane Corporation just purchased computing equipment for $21,000. The equipment will be depreciated using a five...
Crane Corporation just purchased computing equipment for $21,000. The equipment will be depreciated using a five year MACR depreciation schedule. If the equipment is sold at the end of its fourth year for $15.000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent Round answer to 2 decimal places 1525) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Pried The MACRS schedule is the depreciations that time to place to he Tax Act...
4) Madison Woodworking Company bought a lathe for $75,000. It is being depreciated using MACRS with...
4) Madison Woodworking Company bought a lathe for $75,000. It is being depreciated using MACRS with a three-year recovery period. Assuming that the lathe will lead to increased revenues of $50,000 per year, create a table showing the following items for each of years 0 through 4: before-tax cash flow; depreciation; taxable income; income tax; and after-tax cash flow. Assume a tax rate of 40%.
Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wi...
Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wil period. The estimated expenses are $17,500 each year, annual revenues effective tax rate is 40%. preciated by MACRS with a 5-year recovery year; annual revenues are $90,000. The (a) (10 points) Construct a table showing yearly depreciation rate, dep book value to fully depreciate the machine. any depreciation rate, depreciation amount, and 10 points) Construct a complete income statement (using the format...
Three years ago, your business bought a machine for $50,000. The machine has a 5-year MACRS...
Three years ago, your business bought a machine for $50,000. The machine has a 5-year MACRS class life. Three years of depreciation have been claimed. Today, the machine could be sold for $40,000. Your company’s tax rate is 34%. The total tax liability resulting from the sale of the machine would be A. $5,440 tax owed B. $8,670 tax owed C. $5,440 tax saved D. $8,670 tax saved E. None of the above are correct.
A construction company is considering whether to lease or buy equipment for its new 4-year projec...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
Pharoah Corporation just purchased computing equipment for $18,000. The equipment will be depreciated using a five-year...
Pharoah Corporation just purchased computing equipment for $18,000. 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 $12,000, 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.) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period The MACRS schedule lists the tax depreciation rates that firms use for assets placed...
Oriale Corporation just purchased computing equipment for $17,000. The equipment will be depreciated using a five-year...
Oriale Corporation just purchased computing equipment for $17,000. 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 $12,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, eg. 15.25.) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period 9.50 6.68 The MACRS schedule lists the tax depreciatice rules that firms use for...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Period 7-year 5-year 5-year Depreciation Convention Half year Half-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year....
Blossom Corporation just purchased computing equipment for $20,000. The equipment will be depreciated using a five-year...
Blossom Corporation just purchased computing equipment for $20,000. 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 $13,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, eg. 15.25.) MACRS Depreciation Schedules by Allowable Recovery Period EXHIBIT 11.7 The MACRS schedule lists the tax depreciation rates that firms use for assets placed...
You bought a 10-year equipment for $10,000 for your business After using MACRS Table A-1 shown below, you took depreciations for 4 years and then you sold your equipment for $7,000. Assuming your income tax rate is 30%. Answer the following 2 questions: 1. How much is the book value of the equipment when you sold it? (20 points) 2.How much cash did you receive after paying tax when selling this equipment? (15 points) MACRS Hal Year Comvention TABLE 1...
Crane Corporation just purchased computing equipment for $21,000. The equipment will be depreciated using a five year MACR depreciation schedule. If the equipment is sold at the end of its fourth year for $15.000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent Round answer to 2 decimal places 1525) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Pried The MACRS schedule is the depreciations that time to place to he Tax Act...
4) Madison Woodworking Company bought a lathe for $75,000. It is being depreciated using MACRS with a three-year recovery period. Assuming that the lathe will lead to increased revenues of $50,000 per year, create a table showing the following items for each of years 0 through 4: before-tax cash flow; depreciation; taxable income; income tax; and after-tax cash flow. Assume a tax rate of 40%.
Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wil period. The estimated expenses are $17,500 each year, annual revenues effective tax rate is 40%. preciated by MACRS with a 5-year recovery year; annual revenues are $90,000. The (a) (10 points) Construct a table showing yearly depreciation rate, dep book value to fully depreciate the machine. any depreciation rate, depreciation amount, and 10 points) Construct a complete income statement (using the format...
please answer them all and mark the answers . thanks
A construction company is considering whether to lease or buy equipment for its new 4-year project. If they buy the equipment, it will have an initial investment cost of $630,000 with annual costs of $42.000. At the end of the 4 years the equipment can be sold for an estimated $378,000. For tax purposes, the company will use MACRS-ADS depreciation on the equipment. If they decide to lease, it will...
Pharoah Corporation just purchased computing equipment for $18,000. 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 $12,000, 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.) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period The MACRS schedule lists the tax depreciation rates that firms use for assets placed...
Oriale Corporation just purchased computing equipment for $17,000. 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 $12,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, eg. 15.25.) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period 9.50 6.68 The MACRS schedule lists the tax depreciatice rules that firms use for...
At the beginning of its 2019 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250 89,000 80,500 Accumulated Depreciation $17,936 63,368 57,316 Recovery Period 7-year 5-year 5-year Depreciation Convention Half year Half-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $612,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year....
Blossom Corporation just purchased computing equipment for $20,000. 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 $13,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, eg. 15.25.) MACRS Depreciation Schedules by Allowable Recovery Period EXHIBIT 11.7 The MACRS schedule lists the tax depreciation rates that firms use for assets placed...
Most questions answered within 3 hours.
-
lease solve all the
questions, don't need to explanations
Q1 - All animal
species have general...
asked 2 hours ago -
Business Phasing
1.Discuss the logical progression for growing a business, which
starts from the initial idea...
asked 3 hours ago -
Modify
When executing on the command line having only
this program name, the program will accept...
asked 4 hours ago -
Kenny Electric Company's noncallable bonds were issued several
years ago and now have 20 years to...
asked 4 hours ago -
find H(e^Jtheta) at theta= 0, pi/10, pi/20, pi/2 for
the following:
a) H(e^Jtheta)= 1+e^Jtheta
b) H(e^Jtheta)=...
asked 5 hours ago -
Home Corporation will open a new store on January 1. Based on
experience from its other...
asked 5 hours ago -
In a neoclassical model, use the IS-LM to analyze the effect of
a permanent money supply...
asked 5 hours ago -
An electron passes through a point 2.67 cm from a long straight
wire as it moves...
asked 6 hours ago -
A grammar is a 4-tuple G, G = (Ν, Σ, Π, Σ, S) where, Ν is...
asked 7 hours ago -
In this part, calculate the present values. Use the Excel PV
function to compute the present...
asked 7 hours ago -
Part 1. Primitive Types, Sorting, Recursion for
Homework.java
a) Implement the static method initializeArray that receives...
asked 8 hours ago -
Using C++, build a sorter that can rank a sequence of numbers in
a descending order....
asked 8 hours ago