Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $84,000. It is being depreciated under MACRS

image text in transcribed
image text in transcribed
image text in transcribed
Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $84,000. It is being depreciated under MACRS with a 5 Assume 21% ordinary and captal gains tax rates. a. What is the book valuo of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $100,800;$58,800,$14,280, and $10,000. a. The remaining book value is s (Round to the nearest dollar.) machine 4 year(s) ago for $84,000. It is being depreciated under MACRS with a 5-mar recovery period using the schenfule ng amounts: $100,800,$58,800,$14,280, and $10,000 (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes These percentages nave 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 unroundod porcentages or directly apply doubte-dectining batance (200%) depreciation using the haif year convention Book value and taxes on sale of assets Troy Industries purchased a new machine 4 year(s) ago for $84,000. It is being depreciated under MACRS with a 5 Assume 21% ordinary and captal gains tax rates. a. What is the book valuo of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: $100,800;$58,800,$14,280, and $10,000. a. The remaining book value is s (Round to the nearest dollar.) machine 4 year(s) ago for $84,000. It is being depreciated under MACRS with a 5-mar recovery period using the schenfule ng amounts: $100,800,$58,800,$14,280, and $10,000 (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes These percentages nave 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 unroundod porcentages or directly apply doubte-dectining batance (200%) depreciation using the haif year convention

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Multinational Financial Management

Authors: R M Srivastava

1st Edition

8174466703, 9788174466709

More Books

Students also viewed these Finance questions

Question

20. What do you want them to do? (what actions should they take)?

Answered: 1 week ago