Question

Assume Book value and taxes on sale of assets Troy Industries purchased a new machine 4 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule 40% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $96,000; $56,000; $13,600; and $9,500 s s Round to the nearest dollar.) Data Table a. The remaining book value is (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year 5 years 20% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 996 4% 10 years 10% 18% 14% 12% 9% 8% 3 years 33% 45% 15% Recovery year 6% 6% 6% 10 100% 100% 100% Enter your answer in the answer box and then click Check Answer. 100% Totals

Answer 1

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