what if you end up selling the asset at your depreciated book value, then would you...
what if you end up selling the asset at your depreciated book value, then would you have an event that results in no tax implications? Explain
Homework Answers
If we end up selling the asset at the depreciated book value, then we would not have an event that results in any tax implications.
This is because tax implications arise when the sale of the asset is at a value other than the depreciated book value. Tax implications arise on the profit / loss on sale on asset. Profit / loss will arise only if the selling price of the asset is different from the depreciated book value.
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what if you end up selling the asset at your depreciated book
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a) A firm has an asset with a market value of $20,000 and a book value...
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Suppose you sell a fixed asset for $117,000 when its book value is $137,000. If your...
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what will be the effect on cash flows of this sale (i.e., what will
be the after-tax cash flow of this sale)? (Enter your
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for tax purposes an asset is fully depreciated to a book value
of
For tax purposes, an asset is fully depreciated to a book value of zero. True O False Click to select your answer. Type here to search 6 14 3 2 X esc 6 5 4 3 2
Suppose you sell a fixed asset for $117,000 when its book value
is $137,000. If your company’s marginal tax rate is 21 percent,
what will be the effect on cash flows of this sale (i.e., what will
be the after-tax cash flow of this sale)? (Enter your
answer as a whole number.)
Suppose you sell a fixed asset for $117,000 when its book value is $137.000. If your company's marginal tax rate is 21 percent, what will be the effect...
Consider an asset that costs $700,000 and is depreciated straight-line to zero over its 9- year tax life. The asset is to be used in a 6-year project, at the end of the project, the asset can be sold for $183,000. What is the book value of the equipment at the end of the 6 years? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Book value If the relevant tax rate is...
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