An asset was purchased three years ago for $155,000. It falls into the five-year category for...
An asset was purchased three years ago for $155,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $18,560.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
Tax loss on sale?
Tax benefit?
b. Compute the gain and related tax on the sale if the asset is sold now for $63,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.)
Taxable gain?
Tax obligation?
Homework Answers
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An asset was purchased three years ago for $155,000. It falls
into the five-year category for...
An asset was purchased three years ago for $130,000. It falls into the five-year category for...
An asset was purchased three years ago for $130,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12. a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $16,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
An asset was purchased three years ago for $105,000. It falls into the five-year category for...
An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12 a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
An asset was purchased three years ago for $100,000. It falls into the five-year category for...
An asset was purchased three years ago for $100,000. It falls
into the five-year category for MACRS depreciation. The firm is in
a 25 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $13,060.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
b. Compute the gain and related tax on the sale if...
An asset used in a four-year project falls in the five-year MACRS class for tax purposes....
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.)
A $1,000 par value bond was issued five years ago at a coupon rate of 10...
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Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $92,000. The equipment...
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into the five-year category for MACRS depreciation and can
currently be sold for $41,800. A new piece of equipment will cost
$300,000. It also falls into the five-year category for MACRS
depreciation. Assume the new equipment would provide the following
stream of added cost savings for the next six years. Use Table
12–12. Use Appendix B for an approximate answer but calculate your...
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Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $50,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $20,800. A new piece of equipment will cost $140,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12–12. Use Appendix B for an approximate answer but calculate your...
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An asset fitting into the 7-year MACRS category was purchased 2 years ago for $65,000. The book value of this asset is now (Do not round intermediate calculations.) $44,393 $53,993 $34,593 $39,793
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $80,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $80,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $35,800. A new piece of equipment will cost $240,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12– 12. Use Appendix B for an approximate answer but calculate...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $92,000. The equipment...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $92,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $41,800. A new piece of equipment will cost $300,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your...
An asset was purchased three years ago for $130,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12. a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $16,060. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
An asset was purchased three years ago for $105,000. It falls into the five-year category for MACRS depreciation. The firm is in a 25 percent tax bracket. Use Table 12-12 a. Compute the tax loss on the sale and the related tax benefit if the asset is sold now for $13,560. (Input all amounts as positive values. Do not round intermediate calculations and round your answers to whole dollars.) Tax loss on the sale Tax benefit b. Compute the gain...
An asset was purchased three years ago for $100,000. It falls
into the five-year category for MACRS depreciation. The firm is in
a 25 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $13,060.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
b. Compute the gain and related tax on the sale if...
A $1,000 par value bond was issued five years ago at a coupon rate of 10 percent. It currently has 10 years remaining to maturity. Interest rates on similar debt obligations are now 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Compute the current price of the bond using an assumption of semiannual payments. (Do not round intermediate calculations and round your answer...
Hercules Exercise Equipment Co. purchased a computerized
measuring device two years ago for $92,000. The equipment falls
into the five-year category for MACRS depreciation and can
currently be sold for $41,800. A new piece of equipment will cost
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depreciation. Assume the new equipment would provide the following
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Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $80,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $35,800. A new piece of equipment will cost $240,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12– 12. Use Appendix B for an approximate answer but calculate...
Hercules Exercise Equipment Co. purchased a computerized measuring device two years ago for $92,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $41,800. A new piece of equipment will cost $300,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your...
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