Henredon purchased a high precision programmable router for shaping furniture components for $85000. It is expected to last 12 years and have a salvage value of $39000. It is considered a MACRS 7 year property. It will produce $25000 in net revenue each year during its life. Corporate income taxes are 0.28 and the after-tax MARR is 0.01. How much in taxes will they have to pay in year 3 on the income from this machine? Your Answer: Answer
Henredon purchased a high precision programmable router for shaping furniture components for $85000. It is expected to last 12 years and have a salvage value of $39000. It is considered a MACRS 7 year property. It will produce $25000 in net revenue each year during its life. Corporate income taxes are 0.28 and the after-tax MARR is 0.01. How much in taxes will they have to pay in year 3 on the income from this machine? Your Answer: Answer
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 18E
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Question
![Henredon purchased a high precision programmable router for shaping furniture
components for $85000. It is expected to last 12 years and have a salvage value of
$39000. It is considered a MACRS 7 year property. It will produce $25000 in net
revenue each year during its life. Corporate income taxes are 0.28 and the after-tax
MARR is 0.01.
How much in taxes will they have to pay in year 3 on the income from this machine?
Your Answer:
Answer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb984ebe0-a20a-49cd-9d02-9e7861ca4dd3%2Fed2a7646-cfd0-416c-bf2c-c04d1904cc88%2Fvew180k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Henredon purchased a high precision programmable router for shaping furniture
components for $85000. It is expected to last 12 years and have a salvage value of
$39000. It is considered a MACRS 7 year property. It will produce $25000 in net
revenue each year during its life. Corporate income taxes are 0.28 and the after-tax
MARR is 0.01.
How much in taxes will they have to pay in year 3 on the income from this machine?
Your Answer:
Answer
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