In 1st transaction, there is a Loss on Sale of $5000
which will be though Profit & Loss account
In 2nd transaction,
Cost of New Tractor = 330,000 is the Tax dep basis.
Because SLN dep = (Cost of tractor-Salvage)/Life
So tax depreciation basis of the new tractor = $330,000
Please show steps/calculations the machine will operate 1,800 hr per year? The company's cost-of-capital rate is...
the machine will operate 1,800 hr per year? The company's cost-of-capital rate is 7.3%. 2.9 A tractor with an adjusted basis (from depreciation) of $65,000 is sold for $60,000 and a new tractor is purchased with a cash payment of $330,000. These are two separate transactions. What is the tax depreciation basis of the new tractor?
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