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Use this information for the next two problems. HCB Inc. purchased a Bamabeater Deluxe for $150,000 including shipping and installation. The equipment falls in the 5-year MACRS depreciation class, with depreciation rates given below. VOLS sold it after 3 years for $40,000. VOL's tax rate is 25%. 1 3 5 6 Depreciation % 20.00% 19.20% 11.52% 5.76% 1. Calculate the book value of the machine when it is sold. Year a. b. C. d. e. 32,457 35,702 39,273 43,200 47,520 2 32.00% 4 11.52%

Use this information for the next two problems. HCB Inc. purchased a Bamabeater Deluxe for $150,000 including shipping and installation. The equipment falls in the 5-year MACRS depreciation class, with depreciation rates given below. VOLS sold it after 3 years for $40,000. VOL's tax rate is 25%. 1 3 5 6 Depreciation % 20.00% 19.20% 11.52% 5.76% 1. Calculate the book value of the machine when it is sold. Year a. b. C. d. e. 32,457 35,702 39,273 43,200 47,520 2 32.00% 4 11.52%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Use this information for the next two problems. HCB Inc. purchased a Bamabeater Deluxe for $150,000 including shipping and installation. The equipment falls in the 5-year MACRS depreciation class, with depreciation rates given below. VOLS sold it after 3 years for $40,000. VOL's tax rate is 25%. Year 1 2 3 5 6 Depreciation % 20.00% 32.00% 19.20% 11.52% 5.76% 1. Calculate the book value of the machine when it is sold. a. b. C. d. e. 32,457 35,702 39,273 43,200 47,520 4 11.52%
Transcribed Image Text:Use this information for the next two problems. HCB Inc. purchased a Bamabeater Deluxe for $150,000 including shipping and installation. The equipment falls in the 5-year MACRS depreciation class, with depreciation rates given below. VOLS sold it after 3 years for $40,000. VOL's tax rate is 25%. Year 1 2 3 5 6 Depreciation % 20.00% 32.00% 19.20% 11.52% 5.76% 1. Calculate the book value of the machine when it is sold. a. b. C. d. e. 32,457 35,702 39,273 43,200 47,520 4 11.52%
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