Question
Teach Marine Contractors is planning to purchase a dredging pump which has a 3-year class life. The depreciable basis of the machine is $105142. The
Teach Marine Contractors is planning to purchase a dredging pump which has a 3-year class life. The depreciable basis of the machine is $105142. The companys marginal tax rate is 28%. If the company uses MACRS, and the machine is sold after three years for $21584 what will be the after-tax cash flow associated with the disposal? (The table below provides the 3-yr MACRS rates.)
Report your answer rounded to two decimal places.
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Principles Of Taxation For Business And Investment Planning 2016 Edition
Authors: Sally Jones, Shelley Rhoades Catanach
19th Edition
1259549259, 978-1259618536, 1259618536, 978-1259549250
