Question
Martinez,Ltd. Purchases a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%.
Martinez,Ltd. Purchases a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%. If the company sells the machine at the end of four (4) years for $4,000, what is the cash flow from disposal? Show your calculations.
$3,535.36
$3,408.22
$2,592.00
$1,408.00
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Required solution Cost of asset 1500000 less 4 year Depreciation provided 1240800 203219211521...
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Step: 3
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
