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Tho Jones Company has just completed the third yoor of a five-year MACRS rocovory period for a ploce of equipment it orighally purchased for $302,000

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Tho Jones Company has just completed the third yoor of a five-year MACRS rocovory period for a ploce of equipment it orighally purchased for $302,000 a. What is the bock value of the equipment? b. If Jones sells the equipment today for $170,000 and its tax rale is 21%, what is the after-tax cach flow from seling it? c. Just belore A is about to selt the equipront, Jones roceives a new ordor. It can take the new ceder if it keeps the old equipment. Is there a cosi to taking the order and if so, what is in? Feqla in. (Assume the new order wilf consume the remainder of the machine's uselul iffe.) Note: Assueme that the equipment is put into use in year 1 . a. What is the book value of the equipmont? The book value of the equipment ather the third year is 1. (Round to the noarest dollar) b. If Jones sols the equipment today for 5170,000 and its tax rale is 21%, what is the aften tax cash flow from seling it? The total after tax proceeds from the sole are of (Round to the noarest dotlar.) c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order It a koeps the old equiprrent is thece a cost to taking the order and if so, what is if? Explain. (Assume the new order will consume the remainder of the machine's usefil the) (Select the best chaice below.) A. Yes, the cost of taking the order is the lest $89,976 in book value. B. No, Jones akeady owns the machine, so there is no cost to using it for the order. c. Yes, the cost of taking the order is the lost aftertax cash flow of 5150,675 from seling the machine D. Yes, the cost of taking the ordec is the extra depreclafion on the machine

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