Talia's Tutus bought a new sewing machine for $90,000 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 4 years for $26,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?

• Required A
• Find the depreciation charge each year.

Required B

If the sewing machine is sold after 4 years for $26,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?

After-tax proceeds