Question
The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $36,000 7 years ago, had an expected life
The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $36,000 7 years ago, had an expected life of 12 years and an expected salvage value of zero. assume harris uses simplified straight-line depreciation (depreciation of $3,000 per year) and could sell this old machine for $35,000. also assume harris has 32 percent marginal tax rate.
a. what would be the taxes associated with this sale?
b. If the old machine were sold for $25,000, what would be the taxes associated with this sale?
c. If the old machine were sold for $15,000, what would be the taxes associated with this sale?
d. If the old machine were sold for $12,000, what would be the taxes associated with this sale?
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