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Intro Your company bought a new machine for $30,000. The machine falls into the 7- year MACRS category: A B 2 3 Year Depr. rate
Intro Your company bought a new machine for $30,000. The machine falls into the 7- year MACRS category: A B 2 3 Year Depr. rate 1 14.29% 2 24.49% 17.49% 12.49% 5 8.93% 6 8.92% 14 7 8 7 8.93% 9 | 8 4.46% Part 1 1 Attempt 1/10 for 10 pts. What is the book value at the end of year 5? 6693 Correct v c TD Initial cost 30,000 1 Year Depr. rate Depreciation Book value Formula 30,000 =B1 14.29% 4,287 25,713 =D4-C5 24.49% 7,347 18,366 =D5-C6 17.49% 5,247 13,119 =D6-C7 12.49% 3,747 9,372 =D7-C8 8.93% 2,679 6,693 =D8-09 000 18 - Part 2 Attempt 4/10 for 10 pts. If the company can sell the machine for $12,000 in year 5 and the company's marginal tax rate is 10%, what is the after-tax salvage value in year 5? No decimals
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