XYZ Company bought a new machine that cost $800,000 on 1/1/21. The machine had a useful life
Question:
XYZ Company bought a new machine that cost $800,000 on 1/1/21. The machine had a useful life of 8 years. XYZ Company used straight-line depreciation with an estimated salvage value of $0. XYZ Company is subject to an income tax rate of 30%. XYZ Company sold the machine on 1/1/26 (after using the machine for exactly 5 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/26.
If the machine was sold on 1/1/26 for $375,000, the Net Cash Inflow (NCF) is?
If the machine was sold on 1/1/26 for $290,000, the Net Cash Inflow (NCF) is?
If the machine was sold on 1/1/26 for $300,000, the Net Cash Inflow (NCF) is?
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina