Book value = (Purchase price) * (1 - sum of MACRS rates from
beginning to current date)
= $5,300,000 * (1 - 0.2 - 0.32 - 0.192 - 0.1152)
= $5,300,000 * 0.1728
= $915,840
Gain on disposal = $1,650,000 - $915,840 = $734,160.
Tax on gain on disposal = $734,160 * 25% = $183,540.
After tax salvage value = $1,650,000 - $183,540 = $1,466,460.
After tax salvage value = $1,466,460.
WklyEx08 for Chapter Ten (Part 2) Saved An asset used in a four-year project falls in...
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5,400,000 and will be sold for $1,700,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $4,900,000 and will be sold for $1,450,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Aftertax salvage value This is a numeric...
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,150,000 and will be sold for $1,350,000 at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations. Round your answer to the nearest whole dollar. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,300,000 and will be sold for $2,760,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567) Aftertax...
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An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,600,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,600,000 and will be sold for $2,200,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)
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Problem 10-8 Calculating Salvage Value [LO1] An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,050,000 and will be sold for $1,250,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.) Aftertax salvage value Property Class Year Three-Year...
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