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The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $265.000
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $265.000 a. What is the book value of the equoment? b. If Jones sells the equipment today for $177.000 and its tax rate is 21%, what is the after-tax cash flow from selling it? e. Just before it is about to sell the equipment, Jones rece of the machine's useft fe Note: Assume that the equipment is put infn use in year 1 new order I keeps the old equipment is there acest to taking the order and if so, what is it? Expran (Assume the new order will consume the mader a What is the book value of the equipmen The book value of the equipment after the third year is Round to the rest dotar) b. if Jones sels the equipment today for $177,000 and its tax rate is 21%, what is the after sax cash flow from sing The total after-tax proceeds from the sale are s (Round to the nearest dofar), Just before it is about to sell the equipment, Jones receives a new order it can take the new order amps the old equipment is there a cust to taking the order and if so, what is it? Explan (Assume these wit the rema of the machine's useful ste) (Select the best choice below) OA Yes. The cost of taking the order is the lost after-tax cash flow of $167,672 tom seling the machine OB. Yes, the cost of taking the order is the extra depreciation on the machine OC. No. Jones almady owns the machine, so there is no cost to using it for the order OD. Yes, the cost of taking the order is the lost $84,960 in book value The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $295,000. a. What is the book value of the equipment? b. if Jones sells the equipment today for $177,000 and its tax rate is 21%, what is the after-tax cash flow from selling it? Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment, is there a cost to taking the order and if so, what is it? Explain (Assume the new order will consume the remainder of the machine's usehat.) Note: Assume that the equipment is put into use in year 1 CID What is the book value of the equipment? The book value of the equipment after the third year is $(Round to the nearest dollar.) b. Jones sels the equipment today for $177,000 and its tae nate is 21%, what is the after-tax cash flow from selling The total after-tax proceeds from the sale are 5 (Round to the nearest dolar.) Just before it is about to sell the equipment, Jones receives a new order. It can take the new order it keeps the old equipment is there a cost to taking the order and if so, what is 7 Explan (Assume the new order will consume the remainder of the machine's useful e) (Select the best choice belon) OA Yes, the cost of taking the order is the lost after-box cash flow of $157,672 from selling the machine OB Yes, the col of taking the order to the extra depreciation on the machine OC. No, Jones already owns the machine, so there is no cost to using for the order On. Yes the cost of taking the order is the lost $64.900 in book value
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