A company is selling an equipment after four years for $48,887. The equipment was originally purchased...

A company is selling an equipment after four years for $48,887. The equipment was originally purchased for $110,475. The tax rate is 22%.The equipment is classified as a 5-year property. What is the after-tax salvage value?

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jeff jeffy answered 2 years ago

BCK company purchased new equipment with an estimated useful life of four years. The cost of...

BCK company purchased new equipment with an estimated useful life of four years. The cost of the equipment was $50,000, and the salvage value was estimated to be $5,000 at the end of four years. The company uses the double-declining-balance method for book depreciation. (i) What is the amount of depreciation for the fourth year of use? (ii) What is the book value of the asset at the end of the third year?

Equipment that is purchased for $12,000 now is expected to be sold after ten years for...

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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

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ABC Ltd. sold equipment on June 30 2020 for $110,000. The equipment had originally been purchased...

ABC Ltd. sold equipment on June 30 2020 for $110,000. The equipment had originally been purchased for $160,000 on July 1, 2015. At the time of purchase, the equipment’s useful life was estimated to be ten years and to only be worth $10,000 as scrap value at that time. What was the gain or loss reported by ABC on the sale of the equipment? (State any assumptions you make).

HMC sold equipment December 5, 2018 for $2,000. It originally purchased the equipment February 1, 2010...

HMC sold equipment December 5, 2018 for $2,000. It originally purchased the equipment February 1, 2010 for $12,000. The equipment is fully depreciated for book and tax purposes. For tax purposes, the entire gain is recaptured as ordinary income under Section 1245. Complete Tax forms 4562(Depreciation and Amortization) and 4797(Sale of business property) for the following transaction. Please include all supporting forms used in your calculation. The forms can be found on the IRS's website. I have no way of...

Company discarded a computer system originally purchased for $18,000.

Company discarded a computer system originally purchased for $18,000. The accumulated depreciation was $17,200. The company should recognize a(an):Select one:a. $800 loss.b. $8,000 loss.c. $0 gain or loss.d. $800 gain.

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A company had a piece of equipment destroyed by a tornado. The equipment originally cost $85,000 with accumulated depreciation of $60,000. The proceeds from the insurance company were $20,000. Should the company recognize a gain or a loss and for what amount?

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. Pro-Sports, a sports equipment manufacturer, has a machine currently in use that was originally purchased two years ago for $80,000. The firm is depreciating the machine on a straight-line basis using a five-year recovery period. The present machine will last for the next five years or, once removal and clean-up costs are taken into consideration, it could be sold now for $50,000. Pro-Sports can buy a new machine today for a net price of $120,000 (including all installation costs)....

Your company purchased a machine for $60,000. The loan is for four years and calls for...

Your company purchased a machine for $60,000. The loan is for four years and calls for 8% interest. What will be the monthly payment due on the loan?

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