Talia's Tutus bought a new sewing machine for $50,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line.

Required:

a. Find the depreciation charge each year.

b. If the sewing machine is sold after 3 years for $25,000. What will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?

Year Depreciation

1 __________

2 __________

3 ___________

4 ___________

5 ____________

Required B

If the sewing machine is sold after 3 years of $25,000, what will be the after-tax proceeds on the sale fi the firm's tax bracket is 35%?

After-tax proceeds ___________