An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
|
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $6,400,000 and will be sold for $1,530,000 at the end of the project. |
| Required: |
|
If the tax rate is 34 percent, what
is the aftertax salvage value of the asset?
(Do not round intermediate
calculations. Round your answer to 2 decimal
places (e.g., 32.16).) |
Homework Answers
After-tax salvage value is the difference between the selling value of the asset and the tax paid on the gain on the asset.
Determine the after-tax salvage value using the formula:
Step 1: Calculate the book value of the asset:
Asset will be covered under 5 years MACRS (Modified Accelerated Cost Recovery System) class. Thus, it will be depreciated for 6 years according to the MACRS 5 year class table but here, asset will be depreciated up to 4 years as the asset will be used in a project that has four years life.
Calculate the book value of the assets at the end of the 4th year using the equation:
Step 2: Calculate the after-salvage value of the asset using the formula:
Therefore, asset
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An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has a...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,200,000 and will be sold for $1,860,000 at the end of the project. If the tax rate is 40 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Aftertax salvage value $
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,580,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,400,000 and will be sold for $2,100,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $6,900,000 and will be sold for $1,500,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax Salvage Value ?
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,300,000 and will be sold for $2,060,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,580,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,800,000 and will be sold for $2,260,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,400,000 and will be sold for $2,100,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $6.8 million and will be sold for $146 million at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to 2 decimal places. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.89.)...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has a...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,400,000 and will be sold for $1,700,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,580,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,400,000 and will be sold for $2,100,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,300,000 and will be sold for $2,060,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,580,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,800,000 and will be sold for $2,260,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $6.8 million and will be sold for $146 million at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (Do not round intermediate calculations and round your answer to 2 decimal places. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.89.)...
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,400,000 and will be sold for $1,700,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32) Aftertax salvage value
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