Question
8 years ago, a new machine cost $5 million to purchase and an additional $610,000 for the installation. The machine was to be linearly depreciated
8 years ago, a new machine cost $5 million to purchase and an additional $610,000 for the installation. The machine was to be linearly depreciated to zero over 20 years.
The company has just sold the machine for $3 million, and its marginal tax rate is 25%.
1. What is the annual depreciation?
2. What is the current book value?
3. What is the after-tax salvage value?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
14th Edition
1264101597, 9781264101597
