Consider an asset that costs $519,200 and is depreciated straight-line to zero over its 7-year tax...
|
Consider an asset that costs $519,200 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $64,900. |
|
If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) |
A. $150,892.50
B. $143,707.14
C. $136,521.78
D. $42,834.00
E. $793,090.00
Homework Answers
Annual depreciation=(Cost-Salvage value)/Useful Life
=(519200/7)=$74171.42857/year
Hence book value as on date of sale=cost-accumulated depreciation
=519200-(74171.42857*3)
=$296685.7143
Hence loss on sale =$296685.7143-$64900
=$231785.7143
Hence aftertax cash flow=Sale proceeds+(Tax rate*loss on sale)
=64900+($231785.7143*0.34)
which is equal to
=$143,707.14(Approx).
Add Answer to:
Consider an asset that costs $519,200 and is depreciated
straight-line to zero over its 7-year tax...
Consider an asset that costs $710,000 and is depreciated straight-line to zero over its nine-year tax...
Consider an asset that costs $710,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $155,000. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.) Aftertax salvage value nices 1 3 4 5 6 7 Consider an asset that costs...
Consider an asset that costs $237,600 and is depreciated straight-line to zero over its 11-year tax...
Consider an asset that costs $237,600 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $29,700. Required : If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) $19,602.00 $46,529.10 $362,946.00 $48,978.00 $51,426.90
Consider an asset that costs $237,600 and is depreciated straight-line to zero over its 12-year tax...
Consider an asset that costs $237,600 and is depreciated straight-line to zero over its 12-year tax life. The asset is to be used in a 8-year project; at the end of the project, the asset can be sold for $29,700. Required : If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) Options: $19,602.00 $362,946.00 $46,530.00 $44,203.50 $48,856.50
Consider an asset that costs $730,000 and is depreciated straight-line to zero over its seven-year tax...
Consider an asset that costs $730,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $163,000. If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.)
Consider an asset that costs $325,600 and is depreciated straight-line to zero over its 7-year tax...
Consider an asset that costs $325,600 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $40,700. Required: If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) $26,455.00 $102,462.25 $107,855.00 O $624,757.00 O $113,247.75
Consider an asset that costs $812,000 and is depreciated straight-line to zero over its seven year...
Consider an asset that costs $812,000 and is depreciated straight-line to zero over its seven year tax life. The asset is to be used in a five-year project, at the end of the project, the asset can be sold for $154,000. If the relevant tax rate is 21 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.)
Consider an asset that costs $720,000 and is depreciated straight-line to zero over its 10-year tax...
Consider an asset that costs $720,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 8-year project; at the end of the project, the asset can be sold for $207,000. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
Consider an asset that costs $650,000 and is depreciated straight-line to zero over its 8-year tax...
Consider an asset that costs $650,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $123,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax Salvage Value ?
Consider an asset that costs $665,000 and is depreciated straight-line to zero over its 8-year tax...
Consider an asset that costs $665,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $141,000. If the relevant tax rate is 21 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Consider an asset that costs $660,000 and is depreciated straight-line to zero over its 8- year tax life. The asset is...
Consider an asset that costs $660,000 and is depreciated straight-line to zero over its 8- year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $135,000. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
Consider an asset that costs $710,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $155,000. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.) Aftertax salvage value nices 1 3 4 5 6 7 Consider an asset that costs...
Consider an asset that costs $325,600 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $40,700. Required: If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) $26,455.00 $102,462.25 $107,855.00 O $624,757.00 O $113,247.75
Consider an asset that costs $812,000 and is depreciated straight-line to zero over its seven year tax life. The asset is to be used in a five-year project, at the end of the project, the asset can be sold for $154,000. If the relevant tax rate is 21 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.)
Consider an asset that costs $720,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 8-year project; at the end of the project, the asset can be sold for $207,000. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
Consider an asset that costs $660,000 and is depreciated straight-line to zero over its 8- year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $135,000. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
Most questions answered within 3 hours.
-
The fuel economy of a 2011 Lexus RX 350 2wd 6 cylinder 3.5 L
automatic 5...
asked 3 minutes ago -
i.
the synthesized compund 2-bromo-butanal i have a IR peak at about
3200 and one at...
asked 3 minutes ago -
A
752 mL sample of water was placed in a 1000 gram pan of aluminum.
The...
asked 14 minutes ago -
1.In the context of chelation, what does binding strength mean?
What happens at the molecular level...
asked 7 minutes ago -
Describe two obstacles that makes fixing atmospheric nitrogen
difficult.
asked 26 minutes ago -
Evelyn incorporates her sole proprietorship, transferring it to
newly formed Papaya Corporation. The assets transferred have...
asked 12 minutes ago -
Assume that in a hydrogen atom, the electron circles the nucleus
in a circle of radius...
asked 21 minutes ago -
1 point) Given the significance level α=0.01 find the following:
(a) left-tailed z value z= (b)...
asked 15 minutes ago -
Calculate the expected value, the variance, and the standard
deviation of the given random variable X....
asked 17 minutes ago -
T
F 53) Most differences
between human groups are the result of biology rather than
culture....
asked 31 minutes ago -
A 5.20 mW helium neon laser emits a visible laser beam with a
wavelength of 633...
asked 34 minutes ago -
Assignment:
Your
organization has made a strategic decision
to
outsourcework
currently performed in house. You have...
asked 32 minutes ago