My company - Sartell fabrication company is looking into replacing one of our existing shears with...
My company - Sartell fabrication company is looking into replacing one of our existing shears with a newer one that can double the current output. The new shear would cost $55,000 and another $5,000 to install. My old shear was purchased and installed 2 years ago for $35,000 and I have a potential buyer willing to pay me $20,000 for it. Both of my shears are being depreciated under MACRS and on a 5 year recovery schedule. I am also operating under a 40% tax base
- What is the book value of my existing shear?
- What is the tax I am obligated to pay if I sell my existing shear?
- What initial investment cost would I be faced with if I proceed with the replacement?
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My company - Sartell fabrication company is looking into
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