Please correct answer and don't used hand raiting An asset used in a 4-year project falls in the 5-year MACRS class, for tax purposes. The assethas an acquisition cost of $20,462,894 and will be sold for $3,878,555 at the end of theproject. If the tax rate is 0.39, what is the aftertax salvage value of the asset (SVNOT)?TABLE 9.7Modified ACRS depreciation allowancesProperty ClassYear3-Year5-Year7-Year133.33%20.00%14.29%234567844.4532.0024.4914.8119.2017.497.4111.5212.4911.528.935.768.928.934.46

The problem requires the determination of the after-tax salvage value. The price at which a good is…

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Principles of Accounting Volume 1

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Chapter11: Long-term Assets

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Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $19,440,000 and will be sold for $4,320,000 at the end of the project. If the tax rate is 24 percent, what is the aftertax salvage value of the asset? Multiple Choice $4,089,416 $3,283,200 $4,550,584 $4,293,886 $3,884,945
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,720,000 and will be sold for $4,160,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset?
man.2 An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,900,000 and will be sold for $2,440,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? (MACRS schedule) (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $17,820,000 and will be sold for $3,960,000 at the end of the project. Required: If the tax rate is 34 percent, what is the aftertax salvage value of the asset? rev: 09_18_2012 Multiple Choice $3, 660,561 $2,613, 600 $4, 259, 439 $3,843,589 $3,477,533
An asset used in a five-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $2,600,000 and will be sold for $500,000 at the end of the 5th year. If the tax rate is 21 percent, what is the after-tax salvage value of the asset? The 5-year MACRS schedule is below. Year 1 2 3456 Multiple Choice Depreciation % 20% 32% 19.2% 11.52% 11.52% 5.76% $426,449,60 $489,348.80
An asset used in a four-year project falls in the five- year MACRS class for tax purposes.\table[[Property Class], [Year, Three-Year, Five Year, Seven - Year ],[1,33.33%, 20.00 %, 14.29% The asset has an acquisition cost of $6,020,000 and will be sold for $ 1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations. Round your answer to the nearest whole dollar. Enter your answer in dollars, not millions of dollars, e. g. 1,234,567. Property Class Year Three-Year Five-Year Seven-Year 1 33.33% 20.00% 14.29% 23 2 44.45 32.00 24.49 3 14.81 19.20 17.49 4 7.41 11.52 12.49 5 11.52 8.93 69 5.76 8.92 8.93 8 4.46
Fill in the missing numbers and then ation tax shield? 5. Calculating Depreciation A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. LO 2 6. Calculating Salyage Value Consider an asset that costs $635,000 and is
An asset purchased today at a cost of $50,000 is depreciated straight-line down to value 0 over a period of 5 years, for tax purposes. Suppose the asset is sold at a price of $30,000 at the end of 2 years. What is the after-tax cash inflow from salvage (selling the asset), assuming a tax rate of 40%? a) $30,000 b) $26,000 c) $38,000 d) $20,000 e) None of the above
Problem An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,100,000 and will be sold for $1,300,000 at the end of the project. If the tax rate is 27%, what is the after-tax salvage value of the asset? MACRS Depreciation: 2 3 4 5 6 7 8 3 year class 33.33% 44.45% 14.81% 7.41% 5 year class 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7 year class 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46%
son.5 An asset used in a 4-year project falls in the 5-year MACRS class (refer to MACRS table on page 289), for tax purposes. The asset has an acquisition cost of $15,927,647 and will be sold for $5,627,208 at the end of the project. If the tax rate is 0.29, what is the aftertax salvage value of the asset ?
An asset with a purchase price of $501,013 falls in the 3-year MACRS asset class. The asset will be sold at the end of a three year project for $180,745. What is the book value of the asset at the end of the project? Round your answer to the nearest dollar. Year Depreciable Allowance 1 33% 2 45 3 15 4 7
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