Respuesta :
Answer:
$2467.49
Explanation:
As we know that MACRS 3-year class life category is: 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent
We need to find the book value of the machine tool lathe, which is 3 years from now:
Book value = 54,000 - 54,000*33.33% - 54,000*44.44% - 54,000*14.82 %
= $4,001.4
The tax will be based on the profit you have from selling the machine, so:
- The profit = 12,400 - 4,001.4 = $8398.6
Therefore, our taxes are: $8398.6*0.35 = $2932.51
So, the after tax salvage value of the machine is the money you received on the sale minus the taxes you have to pay, that is:
- After tax- Salvage Value = $5,400 - $2932.51= $2467.49
Hope it will find you well.
Answer:
The salvage value after tax is $4910.49
Explanation:
Given Data;
Cost value = $54,000
MACRS = 3-year class life category
Cost of maintenance = $12,400
Tax rate = 35%
Discount rate =11%
Sales value = $5,400
after-tax salvage value =?
The MACRS class depreciation rate for 3 years is;
33.33% 44.44% 14.82% and 7.41%
Total depreciation rate = 33.33% +44.45% +14.81%
=92.59%
Therefore remaining book value = 100%-92.59%
=7.41%
The book value of asset after 3 years = cost of asset *remaining book value
$54,000 * 7.41%
$54,000 *0.0741
$4001.4
The profit gain = Sales value - book value after 3 years
The profit gain =$ 5400 -4001.4
= $1398.6
From the question a tax rate of 35% was paid
Therefore Tax on profit = profit gain *35%
= $1398.6 *0.35
= $489.51
The salvage value after tax= salvage value - tax on profit
= $5400 - $489.51
=$4910.49