Question
Talia's Tutus bought a new sewing machine for $70,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line. Required:
Talia's Tutus bought a new sewing machine for $70,000 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 for years 0 -5.
b.If the sewing machine is sold after 2 years for $44,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
