An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

Question

Question

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,700,000 and will be sold for $2,280,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Book value of asset at end of project

= 8700000 * (1 - 0.2 - 0.32 - 0.1920 - 0.1152)

= 1503360

tax on sale = (2280000 - 1503360) * 0.21

= 163094.4

after tax salvage value of asset

= 2280000 - 163094.4

= 2116905.6

Add a comment

Answer 2

Similar Homework Help Questions

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $7,900,000 and will be sold for $1,640,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule)
An asset used in a four-year project falls in the five-year MACRS class for tax purposes....

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,190,000 and will be sold for $1,390,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Show work please!!! An asset used in a four - year project falls in the five - year MACRS class for tax purposes. The asset has an acquisition...
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,600,000 and will be sold for $3,000,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,600,000 and will be sold for $2,200,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $8,300,000 and will be sold for $1,960,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has a...

An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,400,000 and will be sold for $1,700,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g., 32) Aftertax salvage value

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for...

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,720,000 and will be sold for $4,160,000 at the end of the project. If the tax rate is 23 percent, what is the aftertax salvage value of the asset?
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for...

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $11,340,000 and will be sold for $2,520,000 at the end of the project. If the tax rate is 24 percent, what is the aftertax salvage value of the asset?
An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an...

An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $7,500,000 and will be sold for $1,740,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset?

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost o...

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,300,000 and will be sold for $2,760,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567) Aftertax...

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

Homework Answers

Add Answer to:
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes....

Post as a guest

Earn Coins