a
Book value = (purchase price)*(1-sum of MACR rates from beginning to current date) | |
= (305000)*(1-0.2-0.32-0.192) | |
= 87840 | |
b. After tax salvage value = selling price*(1-tax rate)+book value*tax rate | |
=178000*(1-0.35)+87840*0.35 | |
=146444 |
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 303 comma 000$303,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 180 comma 000$180,000 and its tax rate is 35 %35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $297,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1.
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 175,000 and its tax rate is 35 %, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $295,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $185,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $298,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
> 9-22 (similar to) Question Help The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $297,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the...
D. Yes, the cost of taking the order is the lost after-tax cash flow of $146,489 from selling the machine. ANSWER ASAP PLEASE The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $179,000 and its tax rate is 35%, what is the after-tax cash flow from selling...
MACRS Fixed Annual Expense Percentages by Recovery Class Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20.00% 14.29% 10.00% 2 44.45% 32.00% 24.49% 18.00% 3 14.81% 19.20% 17.49% 14.40% 4 7.41% 11.52% 12.49% 11.52% 5 11.52% 8.93% 9.22% 6 5.76% 8.93% 7.37% 7 8.93% 6.55% 8 4.45% 6.55% 9 6.55% 10 6.55% 11 3.28% NPV. Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 7,000 units, and sales will grow...
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 15% 19% 12% 12% 5% 10 years 10% 18% 14% 7% OVOUWN 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the...