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Last year, a firm declared after-tax salvage on machinery of $40101. The machinery's sale price was...

Last year, a firm declared after-tax salvage on machinery of $40101. The machinery's sale price was $35537 and its book value was $49003. What tax rate was used for this salvage?

Solutions

Expert Solution

Book value $ 49,003.00
Selling price $(35,537.00)
Loss on sale of assest $ 13,466.00
After tax salvage value $ 40,101.00
Selling price $(35,537.00)
Tax effect $    4,564.00
Tax rate 4564/13466
Tax rate 33.89%

ekkarill92 answered 2 years ago
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