Question
In: Accounting
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 3 years agoRelated Solutions
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