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Alja [10]
3 years ago
6

Edward's Manufactured Homes purchased some machinery 3 years ago for $319,000. These assets are classified as 5-year property fo

r MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $140,000 to a foreign firm. What is the aftertax salvage value from this sale if the tax rate is 35 percent
Business
1 answer:
9966 [12]3 years ago
7 0

Answer:

$144,592  

Explanation:

The computation of the after tax salvage value is shown below;

We assume that after 2 years, 52% of the equipment cost would be written off so the remaining basis i.e.

= $319,000 × 48%

= $153,120

The tax loss is

= $153,120 - $140,000

= $13,120

ANd, the tax rate is 35%

So,  

= $13,120 × 0.35

= $4,592

Now the after tax salvage value is

= $140,000 + $4,592

= $144,592  

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Adult population = employed + unemployed + not in the labor force

When homemakers are included in the labor force as employed then the unemployment rate would go down, labor force would increase and so the labor force participation rate would increase.

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