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Your firm is selling a 3-year old machine that has a 13-year class life. The machine originally cost $494,000 and was originally depreciated straight-line to zero salvage value using the 13-year life. Your firm is selling the asset for $162,000. Your firm's marginal tax rate is 34%. What is the total cash flow, net of taxes, from selling the machine? Assume that the firm is otherwise profitable. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.

Your firm is selling a 3-year old machine that has a 13-year class life. The machine originally cost $494,000 and was originally depreciated straight-line to zero salvage value using the 13-year life. Your firm is selling the asset for $162,000. Your firm's marginal tax rate is 34%. What is the total cash flow, net of taxes, from selling the machine? Assume that the firm is otherwise profitable. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.

FINANCIAL ACCOUNTING
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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Your firm is selling a 3-year old machine that has a 13-year class life. The machine originally cost $494,000 and was originally depreciated straight-line to zero salvage value using the 13-year life. Your firm is selling the asset for $162,000. Your firm's marginal tax rate is 34%. What is the total cash flow, net of taxes, from selling the machine? Assume that the firm is otherwise profitable. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.
Transcribed Image Text:Your firm is selling a 3-year old machine that has a 13-year class life. The machine originally cost $494,000 and was originally depreciated straight-line to zero salvage value using the 13-year life. Your firm is selling the asset for $162,000. Your firm's marginal tax rate is 34%. What is the total cash flow, net of taxes, from selling the machine? Assume that the firm is otherwise profitable. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.
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