A Hat company bought a new machine for $1,000. This equipment has a useful life of 15 years and a salvage value of $200. The company has been using the seven-year MACRS property class to depreciate the asset for tax purposes. At the end of year 5, the company sold the equipment for $800. The tax rate is 40%. What are the net proceeds (after tax) from the sale of the equipment?

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: An electrical appliance company purchased an industrial robot costing $300,000 in year 0. The…

A: After-tax salvage value refers to the residual value of an asset or property after it has been sold…

Q: A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $1 ger has a…

A: There are taxes to paid on the capital gain that means if the equipment is sold above the book value…

Q: Totem group is planning to purchase a new printing machine to replace a current machine. The cost of…

A: 1 Calculation  Of Net Initial Cash Flows Amounts in IDR   Cost of New Machine 40000000.00   Add:…

Q: Weatherford purchased a machine with 5 year MACRS for 200,000. They spent an additional 25,000…

A: Purchase Price of Machine = 200,000Total Additional Cost = 25,000 + 25,000 = 50,000MACRS…

Q: Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS…

A: Initial price= $39000Depreciation in year 1= 20%Depreciation in year 2= 32%Selling price in 2 years…

Q: Power Manufacturing has equipment that it purchased 5 years ago for $1,850,000. The equipment was…

A:

Q: Infinity Production acquired a new machine at the beginning of the current year. The machine cost…

A: The objective of the question is to calculate the income tax expense for Infinity Production in the…

Q: ABC Inc. purchased machinery for $600861 which is used through the end of Year 2. The machine falls…

A: CCA Tax Shields = Depreciation * Tax rate for each years - Tax shield on sale value   Year 1 (600861…

Q: Four years ago, Gensco Products Inc. (your employer) purchased for $4,250,000 a new office telephone…

A: Salvage value, also called scrap value, is the value of a specific asset after its useful life. In…

Q: In year 0, an electrical appliance company purchased an industrial robot costing $350,000. The robot…

A: MACRS: Modified Accelerated Cost Recovery SystemThe modified accelerated cost recovery system is a…

Q: Francis Corporation purchased an asset at a cost of $50,000 on March 1, 2017. The asset has a useful…

A:

Q: Company X incurred the following transactions in the current year. For each transaction, explain…

A: Income tax means the charge or levy which was collect by the government authority on the income…

Q: IU purchased a super computer for $15,000. This computer qualifies for 5-year recovery under MACRS.…

A: The after-tax salvage value will be the value after deducting the profit from the sales from SV and…

Q: Burrell Company purchased a machine for $10,000 on January 2, 2019. The machine has an estimated…

A: DEPRECIATION UNDER DOUBLE DECLINING METHOD Rate =100%5 =20% Double declining rate = 20×2=40%

Q: Don’s Workshop acquired a machine two years ago for $40,000. The depreciation schedule is listed…

A: MACRS depreciation is one of the methods of depreciation of assets that help firms deduct relatively…

Q: Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less…

A: Net Present Value (NPV) is a financial measure employed to assess the profitability of an investment…

Q: Need help

A: Step 1:Unique cost of an building is to be $4,186,000Gathered devaluation is $2,478,000Month to…

Q: 13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year MACRS…

A: Depreciation is defined as any fall in the value of an asset due to its usage and time spent on it.…

Q: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

Q: Pet Supply purchased fixed assets two years ago at a cost of $43,800. It no longer needs the assets,…

A: Depreciation is defined as the proportionate reduction in the value of an asset due to constant use…

Q: Troy Industries purchased a new machine 3 year(s) ago for $80,000. It is being depreciated under…

A: MACRS depreciation schedule specifies the specific depreciation rates. This accumulated depreciation…

Q: Plaxo Corporation has a tax rate of 40% and uses the straight-line method of depreciation for its…

A: We record Differed tax asset (DTA) / Differed tax liability (DTL) when there is temporary difference…

Q: An office furniture costing $110,000 has a useful life of 10 years. Fedex took $1200 to deliver and…

A: Solution- Office furniture is a 7 year property which is place to service in the forth quarter so we…

Q: Mergeron Industries purchases a new delivery van. The van costs $32,000 and is expected to last 5…

A: Deferred tax liability : Deferred tax liability is calculated by finding the difference between the…

Q: You purchased in 2020 a new machine at $120,000 by trading it with an old machine. The old machine…

A: MACRS Depreciation The modified accelerated cost recovery system (MACRS) is mainly designed by the…

Q: Power Manufacturing has equipment that it purchased 7 years ago for $2,350,000. The equipment was…

A: Step 1:                        Calculations:           Useful life − 9years          Cost−$2,350,000…

Q: tes $40,000/year of revenue. The b

A: Answer: Total cost of company in initial year =$110,000+ $3,000+$2,000= $115,000 Revenue = $40,000…

Q: The Dauten Toy Corporation currently uses an injection molding machine that was purchased prior to…

A: To calculate the NPV of the incremental cash flow stream, we need to determine the incremental cash…

Q: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: The adjusted basis of machinery refers to the original cost of acquiring the machinery, adjusted for…

Q: Nozark Corp. is now in the final year of a project.  The equipment originally cost $9,179, and the…

A: Book value =$736 Sale price of equipment =$2448 Tax rate =30%

Q: A machine was purchased 1 year ago for $50,000. At the time of purchase, it had an estimated life of…

A: 1. Net cash proceeds on sale  = sale value - Tax expense on profit on sale 2. Depreciation per year…

Q: DML Industries bought a new manufacturing system 3 years ago for $80,000. It is being depreciated…

A: Machine Purchase price is $80,000 Tax rate is 21% Depriciation method is MACR 5 year recovery…

Q: Md inc. acquires a machine for 77,000. It spends an additional $10,000 in installing the machine and…

A: Solution:

Q: A manufacturing cc now (year 0). The r declining balance r= seven years,compu effect for the follow…

A: The cost of the asset which is spread over the benefits of the estimated useful life of an asset is…

Q: riod. The machine was sold for $60,000 at the end f year 2 when the company decided to import the…

A: In MACRS there is more depreciation during initial years of equipment purchase and depreciation goes…

Q: An asset that was originally purchased for $60,818 is being depreciated straight-line over its…

A: Cost = $  60818 Depreciated value = 83% Book value at the time of sale = Cost*(1-Depreciated value)…

Q: Young Corporation bought a car with an estimated life of five years for $25,000. The residual value…

A: Depreciation refers to the reduction in the value of a machine due to use. The amount of…

Q: An in-place machine with B = $155,000 was depreciated by using the Modified Accelerated Cost…

A: Depreciation rste for assets having recovery period of 3 years as per MACRS

Q: Barton and Barton Company (B&B) purchased construction equipment for $57 million.  The equipment was…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation…

A:

Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…

A: The question is based on the concept of Financial Accounting.