a
Book value = (purchase price)*(1-sum of MACR rates from beginning to current date) | |
= (297000)*(1-0.2-0.32-0.192) | |
= 85536 | |
b. After tax salvage value = selling price*(1-tax rate)+book value*tax rate | |
=176000*(1-0.35)+85536*0.35 | |
=144337.6 |
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $305,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $178,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? The...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 303 comma 000$303,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 180 comma 000$180,000 and its tax rate is 35 %35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 175,000 and its tax rate is 35 %, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $295,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $185,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $298,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if...
> 9-22 (similar to) Question Help The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $297,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 35%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the...
D. Yes, the cost of taking the order is the lost after-tax cash flow of $146,489 from selling the machine. ANSWER ASAP PLEASE The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $179,000 and its tax rate is 35%, what is the after-tax cash flow from selling...
5-1 You purchase a new piece of equipment for $150,000. Using MACRS and a recovery period of three years, calculate: a. The depreciation amount in the second year. b. The book value at the end of the second year. 5-2 Cost basis S550,000; recovery period-10 years; salvage value $25,000. a.Using the sraigh line method, what i he amual depreciation? b. What is the book value at the end of the recovery period? 5-3 B- $270,000; SV-$15,000; recovery period-8 years. a....
number Corporation just purchased computing equipment for 526,000. The equipment will be depreciated using a five-year MACRS depreciat schedule. If the equipment Fourth year for $12,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 de mal places, e.g. 15.25.) told the end of te EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period placed interviewer o the cost of the Year is the years which 15-Year The MACRS...