TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 773,188 dollars and in addition it had to spend 71,424 dollars adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the Net Cash Flow from Salvage Value if TVM consulting decides to sell the building on April 15th 2004 for $1,166,278, and that the prevailing tax rate for capital gains is 34%. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)
TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 773,188 dollars and in addition it had to spend 71,424 dollars adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the Net Cash Flow from Salvage Value if TVM consulting decides to sell the building on April 15th 2004 for $1,166,278, and that the prevailing tax rate for capital gains is 34%. (note: round your answer to the nearest cent and do not include spaces, currency signs, or commas)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:TVM Consulting bought new building for its headquarters in the year 2000. The purchase cost was 773,188 dollars and in addition it had to spend 71,424 dollars
adapting the space for its services. The building has been in use since June 21st, 2000. TVM Consulting forecasted that in 2030 the building would have a net
salvage value of $1,000,000. Using the US Straight Line Depreciation Schedule, estimate the Net Cash Flow from Salvage Value if TVM consulting decides to sell
the building on April 15th 2004 for $1,166,278, and that the prevailing tax rate for capital gains is 34%. (note: round your answer to the nearest cent and do not
include spaces, currency signs, or commas)
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