Question
Gregory's Fidget Spinners purchased machinery LAST YEAR for $319,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today
Gregory's Fidget Spinners purchased machinery LAST YEAR for $319,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $140,000 to a foreign firm for use in its production facility in South America. What is the after-tax salvage value from this sale if the tax rate is 35 percent?
MACRS 5-Year Property
| Year | Rate |
|---|---|
| 1 | 20.00% |
| 2 | 32.00% |
| 3 | 19.20% |
| 4 | 11.52% |
| 5 | 11.52% |
| 6 | 5.76% |
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Project Finance In Theory And Practice Designing Structuring And Financing Private And Public Projects
Authors: Stefano Gatti
4th Edition
032398360X, 9780323983600
