EBK PEARSON ETEXT PRINCIPLES OF MANAGER
EBK PEARSON ETEXT PRINCIPLES OF MANAGER
15th Edition
ISBN: 9780136846901
Author: SMART
Publisher: VST
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Chapter 11, Problem 11.8P

Book value and taxes on sale of assets Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period, using the percentages given in Table 4.2. Assume a 40% tax rate.

  1. a. What is the book value of the machine?
  2. b. Calculate the firm’s tax liability if it sold the machine for each of the following amounts: $100,000; $56,000; $23,200; and $15,000.
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EBK PEARSON ETEXT PRINCIPLES OF MANAGER

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