Question
In: Finance
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
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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
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...
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
A piece of newly purchased industrial equipment costs $980,102.00 and is classified as a seven-year property...
A piece of newly purchased industrial equipment costs
$980,102.00 and is classified as a seven-year property under MACRS.
What is the book value of this piece of equipment at the end of
year 3?
A piece of newly purchased industrial equipment costs $969,000 and is classified as seven-year property under...
A piece of newly purchased industrial equipment costs $969,000
and is classified as seven-year property under MACRS. The MACRS
depreciation schedule is shown in Table 10.7. Calculate the annual
depreciation allowances and end-of-the-year book values for this
equipment. (Leave no cells blank - be certain to enter "0"
wherever required. Do not round intermediate calculations and round
your answers to 2 decimal places, e.g., 32.16.)
A piece of newly purchased industrial equipment costs $1,020,000 and is classified as seven-year property under...
A piece of newly purchased industrial equipment costs $1,020,000
and is classified as seven-year property under MACRS. The MACRS
depreciation schedule is shown in MACRS Table.
Required:
Calculate the annual depreciation allowances and end-of-the-year
book values for this equipment. (Do not include the dollar
signs ($). Enter rounded answers as directed, but do not use the
rounded numbers in intermediate calculations. Leave no cells blank.
You must enter "0" for the answer to grade correctly.)
Beginning
Year
Beginning
Book...
A piece of newly purchased industrial equipment costs $1,020,000 and is classified as seven-year property under...
A piece of newly purchased industrial equipment costs $1,020,000
and is classified as seven-year property under MACRS. The MACRS
depreciation schedule is shown in MACRS Table.
Required:
Calculate the annual depreciation allowances and end-of-the-year
book values for this equipment. (Do not include the dollar
signs ($). Enter rounded answers as directed, but do not use the
rounded numbers in intermediate calculations. Leave no cells blank.
You must enter "0" for the answer to grade correctly.)
Beginning
Year
Beginning...
A six year project involves equipment costing $3,460,000 that will be depreciated using the seven-year MACRS...
A six year project involves equipment costing $3,460,000 that
will be depreciated using the seven-year MACRS schedule. If the
estimated pre-tax salvage value for the equipment at the end of the
project's life is $553,600, what is the after-tax salvage value for
the equipment? Assume a marginal tax rate of 21 percent.
please show me how to do this by hand
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