Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7. Your firm is selling a 6-year old machine that has a 10-year class life. The machine originally cost $250,000 and was originally depreciated straight-line
7. Your firm is selling a 6-year old machine that has a 10-year class life. The machine originally cost $250,000 and was originally depreciated straight-line to zero salvage value using the 10-year life. Your firm is selling the asset for $79,000. Your firm's marginal tax rate is 21%. What is the after tax salvage value i.e. how much will the firm receive, net of taxes, from selling the machine? a) $140,000 b) $104,910 c) $29,000 d) $83,410 e) $117,090
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started