2. what is the tax in sale?

Homework: Chapter 10. Learning Objective 2. Topic Homework Save Score: 0.5 of 1 pt 8 of 9 (8 complete) HW Score: 72.57%, 6.53 of 9 pts Problem 10.LO2.27 (similar to) Question Help Tinney & Smyth Inc. is considering the purchase of a new batch polymer-bonding machine for producing Crazy Rubber, a children's toy that is soft, pliable but also bouncy. The machine will increase EBITDA by $265,000 per year for the next two years. Assume that operating cash flows occur at the end of each year. The machine's purchase price is $340,000 and the salvage value at the end of two years is $71,400. The machine is classified as 3-year property. To run the Crazy Rubber production line the company will need to purchase an inventory of polydimethylsiloxane and boric acid for a total cost of $18,000. The MACRS depreciation rates for the first two years are 33.33% and 44 45%. The accumulated depreciation at the end of the two years is $264.452. The tax rate is 35%. What is the tax on the sale of the machine when it is sold at the end of year 2? The book value of the machine is $ . (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. part remaining Clear All Check