Cost of equipment | 125500 | ||||
Less: Accumulated dep @ 75% | 94125 | ||||
Book value of equipment | 31375 | ||||
Sale value of equipmment | 52000 | ||||
Gain on sale of equipment | 20625 | ||||
Tax on Gain @ 30% | 6187.5 | ||||
After tax salvage value = 52000-6187.50 = 45812.50 | |||||
D | Question 12 5 pts Liberty Services is now at the end of the final...
Liberty Services is now at the end of the final year of a project. The equipment originally cost $125,500, of which 75% has been depreciated. The firm can sell the used equipment today for $52,000, and its tax rate is 30%. What is the equipment’s after–tax salvage value for use in capital budgeting analysis?
Liberty Services is now at the end of the final year of a project. The equipment originally cost $125,500, of which 75% has been depreciated. The firm can sell the used equipment today for $36,000, and its tax rate is 30%. What is the equipment’s after–tax salvage value for use in capital budgeting analysis?
Question 12 of 24 Liberty Services is now at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its...
Liberty Services is now at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm...
Karsted Air Services is now in the final year of a project. The equipment originally cost $22 million, of which 75% has been depreciated. Karsted can sell the used equipment today for $5.5 million, and its tax rate is 40%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. $_______
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AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $5 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. $