r. Compute the after tax proceeds from the sale given the following:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ef 544.
![Warner, Inc. is a c-corp which purchased and placed in service land, building and equipment which were then sold
several years later. Compute the after tax proceeds from the sale given the following:
1. The state income tax rate is 4.5 percent
2. The federal income tax rate is 21.0 percent
3. All property was purchased and placed in service in April, 2017
4. All property was sold in August 2022
5. The original cost was:
a. Land: $90,000
b. Building: $375,000
c. Equipment (3 year GDS life): $60,000
e. Equipment (7 year GDS life): $225,000
6. The selling price was $825,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7810ab07-6748-4d32-b0d1-a5d0d459c5f8%2Fd0de3c43-97e4-4b15-be14-e7f91adcd2d3%2Frn3x91i_processed.png&w=3840&q=75)
Transcribed Image Text:Warner, Inc. is a c-corp which purchased and placed in service land, building and equipment which were then sold
several years later. Compute the after tax proceeds from the sale given the following:
1. The state income tax rate is 4.5 percent
2. The federal income tax rate is 21.0 percent
3. All property was purchased and placed in service in April, 2017
4. All property was sold in August 2022
5. The original cost was:
a. Land: $90,000
b. Building: $375,000
c. Equipment (3 year GDS life): $60,000
e. Equipment (7 year GDS life): $225,000
6. The selling price was $825,000
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