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, for tax purposes. The asset has an acquisition cost of $20,349,349 and will be sold for $7,887,127 at the end of the project. If the tax rate is 0.29, what is the aftertax salvage value of the asset (SVNOT)? Modified ACRS depreciation allowances TABLE 9.7 Year 12345678 2 3-Year 33.33% 44.45 14.81 7.41 Property Class 5-Year 20.00% 32.00 19.20 11.52 11.52 5.76 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46
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
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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.)
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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
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