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ud 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

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ud 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 $304,000. a. What is the book value of the equipment? b. I Jones sols the equipment today for $175,000 and its tax rate is 35%, what is the after-tax cash flow from seling it? c. 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 it? sig Explain. (Assume the new order will consume the remainder of the machine's useful life) Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? -ad The book value of the equipment after the third year is $. (Round to the nearest dotar) can b. If Jones sols the equipment today for $175,000 and its tax rate is 35%what is the after-tax cash flow from seling it? The tow after-tax proceeds from tho saloare $(Round to the nearest dolor.) mult c. Just before it is about to tell 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? Inal Explain (Assume the new order will consume the remainder of the machine's the) (Select the best choice below) OA. No, Jones already owns the machine, so there is no cost to using it for the order Chap OB. Yes, the cost of taking the order is the lost $87 552 in book value Dyna OC. Yes, the cost of taking the order is the extra depreciation on the machine Modi OD. Yon, the cost of taking the order is the lost after tax cash flow of $144,393 from selling the machine Comi Click to select your answer(s)

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