Question
1. Genetic Insights Co. purchases an asset for $15,332. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for
1. Genetic Insights Co. purchases an asset for $15,332. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,831.
Calculate accumulated depreciation over 6 years. Round the answer to two decimals.
answer is 5,942.23
2. Genetic Insights Co. purchases an asset for $18,775. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,088.
Calculate book value of an asset. Round the answer to two decimals.
answer is 2,512.10
3.Genetic Insights Co. purchases an asset for $16,945. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,657.
Calculate gain or loss on disposal. Round the answer to two decimals.
answer is 1,389.76
4.Genetic Insights Co. purchases an asset for $15,116. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $4,236.
Calculate tax paid on gain on disposal. Round the answer to two decimals.
answer is 664.04
5.Genetic Insights Co. purchases an asset for $15,870. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,937.
Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.
answer is 3,392.92
please explain with formula
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Regulation Of Securities Markets And Transactions
Authors: Patrick S. Collins
1st Edition
0470601965, 978-0470601969
