ABC purchased $38270 of equipment 2 years ago. The equipment is 7-year MACRS property. What is...

ABC purchased $38270 of equipment 2 years ago. The equipment is 7-year MACRS property. What is the current book value of the equipment?
The MACRS allowance percentages are as follows, starting with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Expert Solution

DEPRECIATION IS ALWAYS % OF ORIGINAL COST

jeff jeffy answered 4 months ago

ABC Company purchased $94118 of equipment 4 years ago. The equipment is 7-year MACRS property. The...

ABC Company purchased $94118 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $5129. What is the After-tax Salvage Value if the tax rate is 15%? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your...

ABC Company purchased $50484 of equipment 5 years ago. The equipment is 7-year MACRS property. The...

ABC Company purchased $50484 of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $8128. What is the After-tax Salvage Value if the tax rate is 35 percent? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if...

Deer and Doe purchased $120,000 of equipment six years ago. The equipment is 7-year MACRS property....

Deer and Doe purchased $120,000 of equipment six years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $24,500. What is the after-tax cash flow from this sale if the tax rate is 35 percent? Year 1 2 3 4 5 6 7 8 Percent 14.29 24.49 17.49 12.49 8.93 8.93 8.93 4.45 a. $27,455.40 b. $25,785.40 c. $15,925.00 d. $21,544.60 e. $18,209.60

Hunter's Lodge purchased $612,000 of equipment four years ago. The equipment is seven-year MACRS property. The...

Hunter's Lodge purchased $612,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is selling this equipment today for $174,500. What is the aftertax cash flow from this sale if the tax rate is 34 percent? The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent. WHICH answer is correct? $187,407.35 $180,174.19 $198,410.18 $168,825.81 $176,610.81

Three years ago, ABC Company purchased some five year MACRS property for $74,000. Today it is...

Three years ago, ABC Company purchased some five year MACRS property for $74,000. Today it is selling it for $28,500. How much tax will the company owe on this sale if the tax rate is 21 percent? The MACRS percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. A. -$3,431.17 B. -$6,389.44 C. $0.00 D. $1,509.48 E. $2,965.50

Three years ago, you purchased some 5-year MACRS equipment at a cost of $135,000. The MACRS...

Three years ago, you purchased some 5-year MACRS equipment at a cost of $135,000. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. You sold the equipment today for $82,500. Which of these statements is correct if your tax rate is 23 percent and you ignore bonus depreciation? Multiple Choice The tax due on the sale is $10,032.60. The book value today is $40,478. The book...

1-Maple Company purchases new equipment (7-year MACRS property) on January 10, 2018, at a cost of...

1-Maple Company purchases new equipment (7-year MACRS property) on January 10, 2018, at a cost of $430,000. Maple also purchases new machines (5-year MACRS property) on July 19, 2018 at a cost of $290,000. Maple wants to maximize its MACRS deductions; assume no taxable income limitations apply. What is Maple's total MACRS deduction for 2018? a. $119,447. b. $560,000. c. $617,148. d. $720,000. 2-Ellie (a single taxpayer) is the owner of ABC, LLC. The LLC (a sole proprietorship) reports QBI...

"You purchased an airplane for $450,000 and will depreciate it using a 7-year MACRS with a...

"You purchased an airplane for $450,000 and will depreciate it using a 7-year MACRS with a 5-year life. Salvage value in year 5 is expected to be $176,000. The airplane is expected to increase revenues by $144,000 per year. However, O&M costs are expected to be $29,000 per year. Your company is in the 21% tax bracket and your MARR is 18%. What is the Net Present Worth of this investment?"

"You purchased an airplane for $494,000 and will depreciate it using a 7-year MACRS with a...

"You purchased an airplane for $494,000 and will depreciate it using a 7-year MACRS with a 5-year life. Salvage value in year 5 is expected to be $188,000. The airplane is expected to increase revenues by $193,000 per year. However, O&M costs are expected to be $29,000 per year. Your company is in the 21% tax bracket and your MARR is 20%. What is the Net Present Worth of this investment?"

what is the year MACRS property for a warehouse placed in service in 1992?

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