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 answer is $12.345 then enter as 12.35 in the answer box.

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Expert Solution

Tax rate	15%


Cost of macine		94,118.00
Depreciation		64,715.54
WDV		29,402.46
Sale price		5,129.00
Profit/(Loss)		(24,273.46)
Tax		(3,641.02)
Sale price after tax	5129+3641	8,770.02

Depreciation	Year-1	Year-2	Year-3	Year-4	Total
Cost	94,118.00	94,118.00	94,118.00	94,118.00
Dep Rate	14.29%	24.49%	17.49%	12.49%
Deprecaition	13,449.46	23,049.50	16,461.24	11,755.34	64,715.54

jeff jeffy answered 2 years ago

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