Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with parts a through d (Capital gains tax) The J. Harris Corporation is considering selling one of its old assembly machines. The machine,

please help with parts a through d image text in transcribed
(Capital gains tax) The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ago, had an expected life of 10 years and an expected salvage value of zero. Assume Harris uses simplified straight-line depreciation (depreciation of $3000 per year) and could sell this old machine for 35,000 . Also assume Harris has a 32 percent marginal tax rate.
a. What would be the taxes associated with this sale?
b. If the old machine were sold for $25000, what would be the taxes associated with this sale?
c. If the old machine were sold for $15000, what would be the taxes associated with this sale?
d. If the old machine were sold for $12000, what would be the taxes associated with this sale?
The Home Comportion is coming one of its old machines. The machine purchased for $30.000 years ago pechendite of 10 years and an expected sale ore A od strane decreto depreciation of $3,000 yua and costs old machine for $35.000. Aloe Harrison marginal What would be the bed with the sale home were 25.000 What to those with this chem were 18.000 Wat would be A machine were told for 12.000, Wed with the Round so the nearest Gola and elect from the otp-down mans

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Analysis And Portfolio Management

Authors: Frank K. Reilly, Keith C. Brown

6th Edition

003025809X, 978-3540014386

More Books

Students also viewed these Finance questions

Question

Compare the advantages and disadvantages of external recruitment.

Answered: 1 week ago

Question

Describe the typical steps in the selection process.

Answered: 1 week ago