Question
In: Finance
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for
$298,000.
a. What is the book value of the equipment?
b. If Jones sells the equipment today for
$176,000
and its tax rate is
35%,
what is the after-tax cash flow from selling it?
Note:
Assume that the equipment is put into use in year 1.
a. What is the book value of the equipment?
The book value of the equipment after the third year is
(Round to the nearest dollar.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a
five-year MACRS recovery period for a piece of equipment it
originally purchased for $296,000.
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $184,000 and its tax rate
is 25%, what is the after-tax cash flow from selling it?
Note: Assume that the equipment is put into use in year 1.
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a
five-year MACRS recovery period for a piece of equipment it
originally purchased for
$ 296 comma 000$296,000.
a. What is the book value of the equipment?
b. If Jones sells the equipment today for
$ 182 comma 000$182,000
and its tax rate is
35 %35%,
what is the after-tax cash flow from selling it?
c. Just before it is about to sell the equipment, Jones
receives a new order....
The Jones Company has just completed the third year of a five-year MACRS recovery period for...
The Jones Company has just completed the third year of a
five-year MACRS recovery period for a piece of equipment it
originally purchased for $298,000.
a. What is the book value of the
equipment?
b. If Jones sells the equipment today for
$183,000 and its tax rate is 35 % what is the after-tax cash flow
from selling it?
c. Just before it is about to sell the
equipment, Jones receives a new order. It can take the new order...
The Jones Company has just completed the third year of a? 5-year diminishing value recovery period...
The Jones Company has just completed the third year of a? 5-year
diminishing value recovery period for a piece of equipment it
originally purchased for $ 297 000. The depreciation rate is
40%.
a. What is the book value of the? equipment?
b. If Jones sells the equipment today for $ 79 000and its tax
rate is 30 %, what is the? after-tax cash flow from selling?
it?
c. Just before it is about to sell the? equipment, Jones
receives...
Assume Maple Corp. has just completed the third year of its existence (year 3).
Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maple's ending book inventory for each year and the additional $263A costs it was required to include in its ending inventory. Maple immediately expensed these costs for book purposes. In year 2, Maple sold all of its year 1 ending inventory, and in year 3 it sold all of its year 2 ending inventory. Required: a. What book-tax difference associated with its inventory did...
Assume Maple Corp. has just completed the third year of its existence (year 3). The table...
Assume Maple Corp. has just completed the third year of its
existence (year 3). The table below indicates Maple’s ending book
inventory for each year and the additional I.R.C. §263A costs it
was required to include in its ending inventory. Maple immediately
expensed these costs for book purposes. In year 2, Maple sold all
of its year 1 ending inventory, and in year 3 it sold all of its
year 2 ending inventory.
Ending book inventory
$
2,680,000
$
3,132,500...
Assume Maple Corp. has just completed the third year of its existence (year 3). The table...
Assume Maple Corp. has just completed the third year of its
existence (year 3). The table below indicates Maple’s ending book
inventory for each year and the additional §263A costs it was
required to include in its ending inventory. Maple immediately
expensed these costs for book purposes. In year 2, Maple sold all
of its year 1 ending inventory, and in year 3 it sold all of its
year 2 ending inventory. Year 1 Year 2 Year 3 Ending book...
Assume Maple Corp. has just completed the third year of its existence (year 3). The table...
Assume Maple Corp. has just completed the third year of its
existence (year 3). The table below indicates Maple’s ending book
inventory for each year and the additional §263A costs (UNICAP) it
was required to include in its ending inventory. Maple immediately
expensed these costs for book purposes. In year 2, Maple sold all
of its year 1 ending inventory, and in year 3 it sold all of its
year 2 ending inventory. What book-tax difference
associated with its inventory...
Assume Maple Corp. has just completed the third year of its existence (year 3). The table...
Assume Maple Corp. has just completed the third year of its
existence (year 3). The table below indicates Maple’s ending book
inventory for each year and the additional §263A costs it was
required to include in its ending inventory. Maple immediately
expensed these costs for book purposes. In year 2, Maple sold all
of its year 1 ending inventory, and in year 3 it sold all of its
year 2 ending inventory. Year 1 Year 2 Year 3 Ending book...
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery...
Rounded Depreciation Percentages by Recovery Year Using MACRS
for
First Four
Property Classes
Percentage
by recovery year*
Recovery year
3
years
5
years
7
years
10
years
1
33%
20%
14%
10%
2
45%
32%
25%
18%
3
15%
19%
18%
14%
4
7%
12%
12%
12%
5
12%
9%
9%
6
5%
9%
8%
7
9%
7%
8
4%
6%
9
6%
10
6%
11
4%
Totals
100%
100%
100%
100%
A
firm is considering renewing its equipment to...
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