Talia’s Tutus bought a new sewing machine for $50,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line.   Required: a. Find the depreciation charge each year. b. If the sewing machine is sold after 4 years for $20,000, what will be the after-tax proceeds on the sale if the firm’s tax bracket is 35%?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.