Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax...

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Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax...

Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $31,900.

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If the relevant tax rate is 32 percent, what is the aftertax cash flow from the sale of this asset?

business finance

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Answer 1

Answer #1

salvage value of plant book value on date of sale Loss on disposal $31,900.00 $127,600.00 -$95,700.00 255200/8*4 Tax gain on

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Answer 2

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Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax...

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Consider an asset that costs $710,000 and is depreciated straight-line to zero over its nine-year tax...

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Consider an asset that costs $725,000 and is depreciated straight-line to zero over its nine-year tax...

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Consider an asset that costs $705,000 and is depreciated straight-line to zero over its 9-year tax life. The asset is to...

Consider an asset that costs $730,000 and is depreciated straight-line to zero over its seven-year tax...

Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax...

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Consider an asset that costs $255,200 and is depreciated straight-line to zero over its 8-year tax...