Homework Answers
rate positively ..
| Cost of asset = | 210000 | ||
| Depreciation | |||
| year 1 @ 33% | 69300 | ||
| year 2 @ 45% | 94500 | ||
| total 2 year depreciation | 163800 | ||
| Book value after 2 year = | 46200 | ||
| sales price = | 45000 | ||
| Loss on sale = | 1200 | ||
| Tax shield on loss =1200*30% | 360 | ||
| Post tax salvage value = | 45360 | ||
| 45000+360 | |||
| ans = | 45360 | ||
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