years ago, you purchased product for factory The product was purchased for $3, 000 The product was expected to depreciate at a rate of 10%, using the declining balance method Today, you sold the pump for $7, 400, after which the asset

Q: A $73,000 machine with a 8-year class life was purchased 5 years ago. The machine will now be sold…

A: Cost of old machine = $73,000Useful life = 8 yearsCost of new machine = $55,000Useful life = 5…

Q: what's the after-tax salvage value of the equipment, in millions of dollars?

A: Value of Equipment after-tax is the net of sale value and cost excluding tax charges on any gain.…

Q: In December of 20x4, Atlas Chemical Corporation sold a forklift for $18,300. The machine was…

A: Salvage  Value net of tax is that amount which includes the tax payable / tax saving on profit on…

Q: A $61,000 machine with a 5-year class life was purchased 2 years ago. The machine will now be sold…

A: As per the straight line method of depreciation, there is uniform annual depreciation during the…

Q: 4. A large corporation subjected to 35% tax is investing in a new income producing asset that is…

A: Internal Rate of Return: The discount rate that reduces a project's net present value to zero is…

Q: 61,000machine with a 6.year class life was purchased 2 years 380 . The machine will now be sold for…

A: Incremental cash flow represents the additional cash flow generated or incurred as a result of a…

Q: A $87,000 machine with a 9-year class life was purchased 4 years ago. The machine will now be sold…

A: calculating the initial outlay for the project 1. Calculate the book value of the old machine:  -…

Q: Company PrestoGro just sold an old piece of equipment for 61.58 million dollars . The equipment's…

A: After tax salvage value will be sale value less taxes paid due to gain on sale or plus tax savings…

Q: A company with a Tax Rate of 20% is going to sell a fixed asset with a Book Value of $334,000 for a…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: 12. You purchased this asset five years

A: Capital gain tax is charged in the USA on the sale of capital asset if…

Q: 40%. If the asset's CCA rate is 20% and the required return on this project is 10%, what is the…

A: The term "present value of the salvage" describes the current value of a future monetary sum, more…

Q: A company buys a machine for $80,000 that has an expected life of 10 years and no salvage value. The…

A: Formula: Accounting rate of return = Net Income after tax / Average investment. Division of average…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Salvage value refers to the residual value, that is, the value at which the equipment can be traded…

Q: 13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year MACRS…

A: Depreciation is defined as any fall in the value of an asset due to its usage and time spent on it.…

Q: selling the asset for $180,000. Your firm's marginal tax rate is 34%. What is the cash flow effect…

A: Calculation of Profit/ loss on sale of fixed assets Original costs=$580000 Depreciation=$580000÷5yrs…

Q: Determine the following as a result of your audit: 46.How much should Pororo recognize as goodwill…

A: Since you have posted more than three subparts, we will provide the solution only to the first three…

Q: Xon, a small oil equipment company, purchased a new petroleum drilling rig for S2,000,000. Xon will…

A: Given information: Cost of petroleum rig : $2,000,000 Cash flows received over 8 years :$750,000…

Q: 0,000 and the firm spent $20,000 for shipping, at the end of its life the machine could be sell for…

A: Depreciation reduce the quantity of tax a corporation or organisation pays by tracking the reduction…

Q: A $80,000 machine with a 10-year class life was purchased 5 years ago. The machine will now be sold…

A: In the capital budgeting initial outlay refers to the cash or expenses that are required to be…

Q: A $64,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold…

A: Required:Incremental Annual Cash flow of the project.

Q: A $62,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold…

A: Cost of old machine = $62,000Useful life = 8 yearsNew machine cost = $77,000Useful life = 10…

Q: Company QuickGro just sold an old piece of equipment for 74.67 million dollars . The equipment's…

A: In this we have to calculate the difference between two and from that and find out the after tax…

Q: A $60,000 machine with a 8-year class life was purchased 2 years ago. The machine will now be sold…

A: Cost of old machine = $60,000Useful life = 8 yearsNew machine cost = $86,000Useful life = 10…

Q: A manufacturing cc now (year 0). The r declining balance r= seven years,compu effect for the follow…

A: The cost of the asset which is spread over the benefits of the estimated useful life of an asset is…

Q: A3) Finance You purchase an asset for $1,000,000. Three years later you sell the asset for $300,000.…

A: TAX: A tax is a mandatory financial charge or other sort of levy imposed on a taxpayer by a…

Q: A warehouse was purchased for $9MM ($2MM down +$7MM loan) 5 years ago and is recently sold for…

A: It is the amount of tax levied on the investor who makes the profit from the sale of an investment…

Q: Sphencal Manuacturing recently spent 14 mion to purchase some euipment used in the mandacte of dsk…

A: calculations are as follows.

Q: Consider the scenario shown below, in which a company uses straight-line depreciation over 3 years…

A: Before we start, let's understand the terms. Deferred Income Taxes are taxes that a company will…

Q: Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases…

A: After tax cashflow = Sell Price - Tax paid on capital gain + tax saved on capital loss

Q: Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the…

A: Present value refers to the method of capital budgeting which describes the value of the current…

Q: Ten years ago you purchased a small apartment complex for $900,000. You borrowed $700,000 at 5…

A: Purchase price: 900,000 Sale price: 1,250,000 Borrowed amount:700,000 Original depreciation…

Q: 289,000. The asset will be placed in a 20% CCA asset class and qualify for the Accelerated…

A: As per the accelerated investment incentive measure,the qualifying asset is eligible for…

Q: Capital gains tax) The J. Harris Corporation is considering selling one of its old a alue of zero.…

A: Depreciation is the process of reducing the value of the assets. It is a non-cash expense of the…

Q: A $61,000 machine with a 5-year class life was purchased 2 years ago. The machine will now be sold…

A: In straight line depreciation there is uniform annual depreciation during the life of equipment and…

Q: erest rate of 8.00% amortized over 25 years. The property's fir 000. Assume an income tax rate of…

A: Cash flow after taxes refers to the concept of determining the overall performance of the company by…

Q: (d) If the old machine is sold for $5,000 now instead of $2,500, what would be the amount of the…

A: The profit or positive difference between a capital asset's sale price and its original cost basis…

Q: Use the spreadsheet to determine the after-tax internal rate of return. For this problem, assumea a…

A: Annual depreciation = Initial costUseful life= $200,00010 years= $20,000

Q: A $63,000 machine with a 6-year class life was purchased 2 years ago. The machine will now be sold…

A: Identified costs and benefits: Determined the net cost of the new machine by considering its price,…

Q: Check my eEgg is considering the purchase of a new distributed network computer system to help…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows) IRR is a rate at…

Q: You work for Tamimi Industries, which purchased robotics equipment for $430,000 six years ago. The…

A: Earnings before interest and taxes: During an accounting period, the operating income earned by an…

Q: Premier Steel is selling a machine for $20,000 that currently has a book value of $7,840. The…

A: Variables in the question:Sale Value=$20000Book Value=$7840Marginal Tax=40%

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.