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zimovet [89]
3 years ago
10

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 $7,800,

000 and will be sold for $1,560,000 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)
Business
1 answer:
Margaret [11]3 years ago
8 0

Answer:

<em>= $1,513,325.</em>

Explanation:

Book value as on date of sale = Cost-Accumulated depreciation

= 7,800,000*(1-0.2-0.32-0.192-0.1152)

= $1,347,840

Therefore gain on sale = 1,560,000 - 1,347,840

= $212,160

So, after-tax salvage value = Sale proceeds - (Tax rate * Gain on sale)

=1,560,000 - (212,160 * 0.22)

<em>=$1,513,325(Approx).</em>

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Answer:

The correct answer is letter "C": high rise window washer.

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4 years ago
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7 0
4 years ago
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7 0
2 years ago
Suppose a state has the following individual income tax structure.The first $20,000 that an individual earns is taxed at 5%. The
blagie [28]

Answer: $6,000

Explanation: Considering the tax structure:

An employee with a total income of $60,000 will pay:

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7 0
4 years ago
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JulsSmile [24]

Answer:

B. False

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The days sales in receivable indicates the number of days in which a company receives the payments of its credit sales. A lower number indicates that the business collects the money faster and more efficiently. According to this, the statement is false because the days sales in receivable for baker sales is 35 and for xanadu company is 25 which means that xanadu company is having less difficulty in collecting the money.

7 0
3 years ago
Read 2 more answers
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