what is the after-tax cash flow from the sale of the trimmer (use a 35% tax rate) if a. the sales price was $30,000? b. the sales price was $29,053.20? c. the sales price was $21,000? (Round to the nearest cent.)
what is the after-tax cash flow from the sale of the trimmer (use a 35% tax rate) if a. the sales price was $30,000? b. the sales price was $29,053.20? c. the sales price was $21,000? (Round to the nearest cent.)
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
Problem 1PS
Related questions
Question
Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for
$93,000.
It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS,
was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a
35%
tax rate) ifa. the sales price was
$30,000?
b. the sales price was
$29,053.20?
c. the sales price was
$21,000?
(Round to the nearest cent.)
MACRS Fixed Annual Expense Percentages by Recovery Class
|
Year
|
3-Year
|
5-Year
|
7-Year
|
10-Year
|
|
|
1
|
33.33%
|
20.00%
|
14.29%
|
10.00%
|
|
|
2
|
44.45%
|
32.00%
|
24.49%
|
18.00%
|
|
|
3
|
14.81%
|
19.20%
|
17.49%
|
14.40%
|
|
|
4
|
7.41%
|
11.52%
|
12.49%
|
11.52%
|
|
|
5
|
|
11.52%
|
8.93%
|
9.22%
|
|
|
6
|
|
5.76%
|
8.93%
|
7.37%
|
|
|
7
|
|
|
8.93%
|
6.55%
|
|
|
8
|
|
|
4.45%
|
6.55%
|
|
|
9
|
|
|
|
6.55%
|
|
|
10
|
|
|
|
6.55%
|
|
|
11
|
|
|
|
3.28%
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education