ZuoTi.Pro
Question

Walden, Inc. purchased some fixed assets four years ago at a cost of $302,000. It no...

Walden, Inc. purchased some fixed assets four years ago at a cost of $302,000. It no longer needs these assets, so it is going to sell them today at a price of $67,000. The assets are classified as 5-year property for MACRS. The MACRS table values .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets? $65,319.40 $47,456.50 $55,216.70 $52,185.60 $60,108.20

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

current book value of assets = purchase cost - accumulated depreciation

accumulated depreciation = purchase cost * (sum of MACRS depreciation values for 4 years)

accumulated depreciation = $302,000 * (0.2000 + 0.3200 + 0.1920 + 0.1152) = $249,814.40

current book value of assets = $302,000 - $249,814.40 = $52,185.60

0 0
Add a comment
Know the answer?
Add Answer to:
Walden, Inc. purchased some fixed assets four years ago at a cost of $302,000. It no...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Walden, Inc. purchased some fixed assets four years ago at a cost of $302,000. It no...

    Walden, Inc. purchased some fixed assets four years ago at a cost of $302,000. It no longer needs these assets, so it is going to sell them today at a price of $67,000. The assets are classified as 5-year property for MACRS. The MACRS table values .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets? $65,319.40 $47,456.50 $55,216.70 $52,185.60 $60,108.20

  • Marsh Corporation purchased some fixed assets four years ago at a cost of $782,000. It no...

    Marsh Corporation purchased some fixed assets four years ago at a cost of $782,000. It no longer needs these assets, so it is going to sell them today at a price of $159,000. The assets are classified as 5-year property for MACRS. The MACRS table values .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets? $143,457.40 $135,129.60 $152,876.20 $129,500.60 $161,472.30

  • Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is...

    Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is being depreciated using the straight-line method over eight years. The tax rate is 21 percent and the discount rate is 14 percent. If the machine is sold today for $42,500, what will the aftertax salvage value be? A. $31,794.72 B. $49,268.13 C. $38,439.13 D. $46,560.88 Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets...

  • Edward's Manufactured Homes purchased some machinery 2 years ago for $43,000. The assets are classified as...

    Edward's Manufactured Homes purchased some machinery 2 years ago for $43,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $17,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 34 percent? MACRS 5-year property Year Rate 20.00% 32.00%...

  • Edward's Manufactured Homes purchased some machinery 2 years ago for $48,000. The assets are classified as...

    Edward's Manufactured Homes purchased some machinery 2 years ago for $48,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $16,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 34 percent? MACRS 5-year property Year Rate 1 20.00%...

  • 1: 25. Crafters Supply purchased some fixed assets 2 ears It no longer needs these assets...

    1: 25. Crafters Supply purchased some fixed assets 2 ears It no longer needs these assets so it at a cost of $38,700. is going to sell them today for $25,000. The assets are classified as 5-year property for MAC flow (After-tax salvage) from this sale if the firm's tax rate is 30 percent? ar property for MACRS. What is e MACRS S-year property A. $13,122.20 B. $18,576.00 2000% 11 32.00% 12:327 11.52% 11 u5g, , E. $25,211.09 у 11.52%...

  • The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800. The...

    The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today (assume it is fully depreciated) at a price of $13,500. What is the amount of the aftertax profit on the sale? Assume the firm applies bonus depreciation and has a tax rate of 21 percent. Select one: a. $10,665.00 b....

  • Saved Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7...

    Saved Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7 million. The same machinery can be sold today to Shatner Inc. for $4.55 million. Nimoy's current balance sheet shows net fixed assets of $3.45 million and current liabilities of $1.8 million. If all the current assets were liquidated today, the company would receive $1.9 million cash. Use the balance sheet identity to determine the current market value of Nimoy's total liabilities (current & long-...

  • Saved Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7...

    Saved Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7 million. The same machinery can be sold today to Shatner Inc. for $4.55 million. Nimoy's current balance sheet shows net fixed assets of $3.45 million and current liabilities of $1.8 million. If all the current assets were liquidated today, the company would receive $1.9 million cash. Use the balance sheet identity to determine the current market value of Nimoy's total liabilities (current & long-...

  • show work You own some equipment that you purchased 3 years ago at a cost of...

    show work You own some equipment that you purchased 3 years ago at a cost of $350,000. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $123,000. Which one of the following statements is correct if your tax rate is (40%? initial : 350,000 MACRS 5-year property Year Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 0 straight line 350,000 - 123,000 w @ a. The tax due on the sale is $26,425 b. The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT