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Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $78,000. It is being depreciated under MACRS

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Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Assume 40% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $93,600;$54,600;$13,260; and $9,300. a. The remaining book value is $ (Round to the nearest dollar.) Data table Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention. Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule Assume 40% ordinary and capital gains tax rates. a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $93,600;$54,600;$13,260; and $9,300. a. The remaining book value is $ (Round to the nearest dollar.) Data table Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes "These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention

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