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P11-8 (similar to) Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for $84.000. It is being

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P11-8 (similar to) Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for $84.000. It is being depreciated under MACRS with a 5-year recovery period using the schedule - Assume 40% ordinary and capital gains tax rates a. What is the book value 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 $40320, and $28,200 a. The remaining book value is $ 40320 (Round to the nearest dollar) b. Calculate the firm's tax liability for each case: Round to the nearest dollar) Total Sale Price 100,800 $ Capital Gain s Tax on Capital Gain s Depreciation Recovery Tax on Recovery Tax Enter any number in the edit fields and then click Check Answer (Round to the nearest dollar for all) Sale Price Capital Gain ____$ Tax on Capital Gain ____$ Depreciation Recovery Tax on Recovery ____ $ Total Tax $58,800 __$ $40,320 --- $ -___$ $28,200 ____$ TS $58,800 --_$ ___$ - $ $40,320 _ $ __ $28,200 --$ P11-8 (simila 0 Data Table - X As with a 5-year Book value and ta recovery period usi a. What is the book b. Calculate the fin (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) a. The remaining be b. Calculate the fim Sale Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 19% 18% 12% 1296 12% 9% Price 1008 $ NMD 0 10 years 10% 18% 14% 12% 9% 5% Enter any number Print Done 2 parts S remaining swer P11-8 (similar to) Book value and taxes on sale of assets Troy Industries purchased a new machine 2 year(s) ago for $84.000. It is being depreciated under MACRS with a 5-year recovery period using the schedule - Assume 40% ordinary and capital gains tax rates a. What is the book value 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 $40320, and $28,200 a. The remaining book value is $ 40320 (Round to the nearest dollar) b. Calculate the firm's tax liability for each case: Round to the nearest dollar) Total Sale Price 100,800 $ Capital Gain s Tax on Capital Gain s Depreciation Recovery Tax on Recovery Tax Enter any number in the edit fields and then click Check Answer (Round to the nearest dollar for all) Sale Price Capital Gain ____$ Tax on Capital Gain ____$ Depreciation Recovery Tax on Recovery ____ $ Total Tax $58,800 __$ $40,320 --- $ -___$ $28,200 ____$ TS $58,800 --_$ ___$ - $ $40,320 _ $ __ $28,200 --$ P11-8 (simila 0 Data Table - X As with a 5-year Book value and ta recovery period usi a. What is the book b. Calculate the fin (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) a. The remaining be b. Calculate the fim Sale Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 19% 18% 12% 1296 12% 9% Price 1008 $ NMD 0 10 years 10% 18% 14% 12% 9% 5% Enter any number Print Done 2 parts S remaining swer

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