Question
Talia's Tutus bought a new sewing machine for $75,000 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 $75,000 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 2 years for $50,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
