Question
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:
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 2 years for $55,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
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Project Finance in Theory and Practice
Authors: Stefano Gatti
2nd edition
978-9382291589, 123919460, 978-0124157538, 978-0123919465
