Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company purchased a machine for $ 8 0 , 0 0 0 . The machine will be straight - line depreciated to zero for

A company purchased a machine for $80,000. The machine will be straight-line depreciated to zero for the 10-year life of the machine. The company plans to use the machine for a 7-year project. The estimated market value of the machine at the end of the project is $29,000. The capital gains tax rate is 20%. What is the after-tax salvage value of the machine at the end of the project?
Note: Do not round your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions