Answer the following.

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b.

t is Jan 1. The Rumpel Felt Company purchased a felt press last year at a cost of $7,500. The machine had an expected life of 3 ears at the time of purchase. The machine was depreciated using MACRS with a 5-year recovery period. (MACRS depreciation rates are shown in the table E3.) The division manager reports that, for $12,000 (including installation a new felt press can be bought. The new felt press will expand sales, because the new fashion is for smoother felt. The old machine's current market value is $1,000. Taxes are 40%. What is the net salvage value of the old press if Rumpel replaces it today? The net salvage value of the old press is Round to the nearest whole dollar. Data Table MACRS Depreciation Rates Year Year 10-Year 5-Year 14.29% 10.00% 20.00% 24.49% 18.00% 32.00% 14.40% 19.20% 17.49% 11.52% 12.49% 11.52% 11.52% 8.93% 9.22% Print Done