2. From the following please calculate (10 marks)

X company bought a new sewing machine for $40,000 that will be depreciating using the tax rate of depreciation for s five year recovery period.

1. Find the depreciation charge each year

2. If the sewing machine is sold after 3 years for $20,000, what will be the after tax proceeds on the sale if the firms tax bracket is 35%?

	Tax rate depreciation schedule
Years	3 year	5 year	7 year	10 year
1	33.33	20.00	14.29	10.00
2	44.45	32.00	24.49	18.00
3	14.81	19.20	17.49	14.40
4	7.41	11.52	12.49	11.52
5		11.52	8.93	9.22
6		5.76	8.93	7.37
7			8.93	6.55
8			4.45	6.55
9				6.55
10				6.55
				3.29