Book value = $2,850,000 - $2,850,000 * (20% + 32% + 19.20% +
11.52%)
= $2,850,000 - $2,357,520
= $492,480
Sales price = $315,000
Selling price - book value = $315,000 - $492,480 = -$177,480
Tax = -$177,480 * 40% = -$70,992
After tax salvage value = $315,000 + $70,992 = $385,992
After tax salvage value = $385,992
Question 1 ents BrummittCorp is evaluating a new 4-year project. The equipment necessary for the project...
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Question 5 1 points Save Anne A company is evaluating a new 4-year project. The equipment necessary for the project will cost $3.950,000 and can be sold for $760,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent. 32,00 percent. 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment? O $760,000 $494.000...
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Pear Orchards is evaluating a new project that will require equipment of $217,000. The equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $46,300. However, the company plans to keep the equipment for a different project in another state. The tax rate is...
Pear Orchards is evaluating a new project that will require equipment of $235,000. The equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $58,000. However, the company plans to keep the equipment for a different project in another state. The tax rate is...
Pear Orchards is evaluating a new project that will require equipment of $241,000. The equipment will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $61,900. However, the company plans to keep the equipment for a different project in another state. The tax rate is...