Def company inc purchased a 3c copier for $500,000 one year and nine months ago. The assets has a six year life and has been depreciated according to the following accelerated schedule Year. 1. 2. 3. 4. 5. 6. % of cost. 55. 20. 10. 5. 5. 5 the press was just sold for $125,000. The firms marginal tax rate is 35%. Calculate DEF's taxable profit and cash flow on the sale. Assume depreciation is spread evenly within each year.
Def company inc purchased a 3c copier for $500,000 one year and nine months ago. The assets has a six year life and has been depreciated according to the following accelerated schedule Year. 1. 2. 3. 4. 5. 6. % of cost. 55. 20. 10. 5. 5. 5 the press was just sold for $125,000. The firms marginal tax rate is 35%. Calculate DEF's taxable profit and cash flow on the sale. Assume depreciation is spread evenly within each year.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Def company inc purchased a 3c copier for $500,000 one year and nine months ago. The assets has a six year life and has been
Year. 1. 2. 3. 4. 5. 6.
% of cost. 55. 20. 10. 5. 5. 5
the press was just sold for $125,000. The firms marginal tax rate is 35%. Calculate DEF's taxable profit and cash flow on the sale. Assume depreciation is spread evenly within each year.
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