Question
Big Dog Florists (BDF) just purchased a new delivery truck for $29,000, a light truck. Using MACRS tables for a five-year asset, calculate the following:
Big Dog Florists (BDF) just purchased a new delivery truck for $29,000, a light truck. Using MACRS tables for a five-year asset, calculate the following:
The book value at the end of the year 4.
a. $ 5,800.00
b. $ 1,670.40
c. $25,659.20
d. $ 3,340.80
e. $ 5,011.20
Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $15,000?
a. $ 6,602.40
b. $10,500.00
c. $13,005.60
d. $ 1,994.40
e. $ 6,992.16
Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $10,000?
a. $9,505.60
b. $3,102.40
c. $7,000.00
d. $1,153.60
e. $ 494.40
Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $5,000?
a. $5,000.00
b. -$1,005.60
c. $3,994.40
d. $6,005.60
e. $3,500.00
Big Dog Florists (BDF) just purchased a new delivery truck for $29,000, a light truck. Using MACRS tables for a five-year asset, calculate the book value at the end of the year 4.
a. $ 5,800.00
b. $ 1,670.40
c. $25,659.20
d. $ 3,340.80
e. $ 5,011.20
2. Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $15,000?
a. $ 6,602.40
b. $10,500.00
c. $13,005.60
d. $ 1,994.40
e. $ 6,992.16
3. Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $10,000?
a. $9,505.60
b. $3,102.40
c. $7,000.00
d. $1,153.60
e. $ 494.40
4. Big Dog Florists (BDF) sold its delivery truck after three years (Prob. 1). Using a 30% tax rate, what is the after-tax salvage value for the truck if BDF sells the truck for $5,000?
a. $5,000.00
b. -$1,005.60
c. $3,994.40
d. $6,005.60
e. $3,500.00
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
