Texas Milk Farm purchased a Cooling Machine for $80,000. It is classified as 3-yearMACRS asset. It was sold at end of third year for $18,000. Assume the taxrate is 35%, The net proceeds from the sale of the machine is approximately equal to:O $15,848$20,152O $13,775None of the other answers

Net cost left = Cooling Machine - Depreciation of 3 Years Profit = Sale value - Net cost left…

Texas Milk Farm purchased a Cooling Machine for $80,000. It is classified as 3-yearMACRS asset. It was sold at end of third year for $18,000. Assume the tax ate is 35%, The net proceeds from the sale of the machine is approximately equal to: O $15,848 O $20,152 O $13,775 O None of the other answers

Texas Milk Farm purchased a Cooling Machine for $80,000. It is classified as 3-yearMACRS asset. It was sold at end of third year for $18,000. Assume the tax ate is 35%, The net proceeds from the sale of the machine is approximately equal to: O $15,848 O $20,152 O $13,775 O None of the other answers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Texas Milk Farm purchased a Cooling Machine for $80,000. It is classified as 3-yearMACRS asset. It was sold at end of third year for $18,000. Assume the tax
rate is 35%, The net proceeds from the sale of the machine is approximately equal to:
O $15,848
$20,152
O $13,775
None of the other answers

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