ZuoTi.Pro
Question

Edwards Manufactured Homes purchased some machinery 2 years ago for $43,000. The assets are classified as 5-year property fo

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Book value as on date of sale=Cost-Accumulated Depreciation

=43,000*(1-0.2-0.32)=20640

Hence loss on sale=20640-17000=3640

Hence aftertax salvage value=Sale proceeds+(Tax rate*Loss on sale)

=17000+(3640*0.34)

=$18237.6

0 0
Add a comment
Know the answer?
Add Answer to:
Edward's Manufactured Homes purchased some machinery 2 years ago for $43,000. The assets are classified as...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Edward's Manufactured Homes purchased some machinery 2 years ago for $48,000. The assets are classified as...

    Edward's Manufactured Homes purchased some machinery 2 years ago for $48,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $16,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 34 percent? MACRS 5-year property Year Rate 1 20.00%...

  • ABC Company purchased a new machinery two years ago for $68759. Today, it is selling this...

    ABC Company purchased a new machinery two years ago for $68759. Today, it is selling this machinery for $25416. What is the after-tax salvage value if the tax rate is 37 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

  • Bernie's Beverages purchased some fixed assets classified as 5-year property for MACRS. The assets cost $28,000....

    Bernie's Beverages purchased some fixed assets classified as 5-year property for MACRS. The assets cost $28,000. What will the accumulated depreciation be at the end of year three? MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%

  • Three years ago Weather Tec purchased some five-year MACRS property for $82,600. Today, it is selling...

    Three years ago Weather Tec purchased some five-year MACRS property for $82,600. Today, it is selling this property for $31,500. How much tax will the company owe on this sale if the tax rate is 34 percent? The MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

  • ABC Company purchased a new machinery two years ago for $62,894. Today, it is selling this...

    ABC Company purchased a new machinery two years ago for $62,894. Today, it is selling this machinery for $18,852. What is the after-tax salvage value if the tax rate is 21 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as...

  • show work You own some equipment that you purchased 3 years ago at a cost of...

    show work You own some equipment that you purchased 3 years ago at a cost of $350,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $123,000. Which one of the following statements is correct if your tax rate is (40%? initial : 350,000 MACRS 5-year property Year Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 0 straight line 350,000 - 123,000 w @ a. The tax due on the sale is $26,425 b. The...

  • You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost...

    You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $173,000. What will the book value of this equipment be at the end of 4 years should you decide to resell the equipment at that point in time? Do not include the $ sign, and round it to a whole dollar. MACRS   5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%

  • You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost...

    You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $79,000. What will the book value of this equipment be at the end of two years should you decide to resell the equipment at that point in time?                MACRS 5-year Property                Year                      Rate                1                            20.00%                2                            32.00%                3                            19.20%                4                            11.52%                5                            11.52%                6                          5.76% Group of answer choices $56,248 $41,080 $37,920 $5,056 $22,752

  • Use the table below to answer this question 1 MACRS 5-year property Year Rate 20.00% 2...

    Use the table below to answer this question 1 MACRS 5-year property Year Rate 20.00% 2 32.00% 2 19.20 4 11.52% 5 11.52% 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $65,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered 544 500 for his old assets. What is the...

  • A company is selling an equipment after four years for $37,249. The equipment was originally purchased...

    A company is selling an equipment after four years for $37,249. The equipment was originally purchased for $88,575. The tax rate is 12%.The equipment is classified as a 5-year property. What is the after-tax salvage value? The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT