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…

Answered: An asset used in a 4-year project falls…

Principles of Accounting Volume 1

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Chapter11: Long-term Assets

Section: Chapter Questions

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

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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.)
Consider an asset that costs $1,280,170 and is depreciated straight-line to 83,206 over its 14-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $128,169. If the relevant tax rate is 0.21, what is the aftertax cash flow from the sale of this asset (SVNOT)?
for this equipment. 0. Calculating Salvage Value Consider an asset that costs $635,000 and is depreciated straight-line to zero over its eight-vear 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 S105,000. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset? LO 2
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
Aa.4
Consider an asset that costs $422,400 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 $52,800. If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset? Multiple Choice $268,236.00 $68,745.60 $62,198.40 $65,472.00 $40,128.00 Drou 10 Novt -
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An asset with a purchase price of $486,966 falls in the 5-year MACRS asset class. The asset will be sold at the end of a three year project for $153,883. 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 20% 32 19 12 11 6. 6. 4-
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Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 10% per year, MACRS depreciation applies, and T.= 42%. The (GI – OE) estimate is made for the first three years; it is zero in year 4 when each asset is sold. %3D Alternative First Cost. $ -8,000 -13,000 Salvage value, year 4, $ GI – OE, $ per year 3,500 5,000 Recovery period, years
6.1 A project requires the purchase of new equipment at a cost of $12,000, which will be depreciated over the life of the asset. A further $8000 spent on transport and installation will be added to the purchase price of the equipment for depreciation purposes, and $1000 will be spent on advertising and other operating expenditure to get the project up and running. Excluding depreciation, what is the amount that will be claimed as a tax deduction in Year 1? a. $21,000 b. $1,000 c. $20,000 d. $9,000

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