Answer the following 3 questions based on the above information. 1) Calculate the after tax present worth of the tractor considering depreciation deduction of the tractor’s life using SLN allowances. 2) Calculate the after tax present worth of the tractor considering depreciation deduction of the tractor’s life using MACRS-GDS allowances. (MACRS class has to be determined) 3) Calculate the after tax present worth present worth of the tractor considering depreciation deduction of the tractor’s life using Double Declining Depretiation allowances.
A granary purchased tractor for over-the-road hauling for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000 but was sold at $6,000 at the end of 4 years. During the period of operation it generated an average savings of $170,000, incurring an annual driver costs of $70,000 and annual operating and maintenance cost of $63,000 every year.
The granary is considering multiple
Answer the following 3 questions based on the above information.
1) Calculate the after tax present worth of the tractor considering depreciation deduction of the tractor’s life using SLN allowances.
2) Calculate the after tax present worth of the tractor considering depreciation deduction of the tractor’s life using MACRS-GDS allowances. (MACRS class has to be determined)
3) Calculate the after tax present worth present worth of the tractor considering depreciation deduction of the tractor’s life using Double Declining Depretiation allowances.
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