Question
Use the following MACRS depreciation schedule for questions #8 - #10: MACRS 5-Year Property Year MACRS Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52%
Use the following MACRS depreciation schedule for questions #8 - #10:
MACRS 5-Year Property
| Year | MACRS Rate |
| 1 | 20.00% |
| 2 | 32.00% |
| 3 | 19.20% |
| 4 | 11.52% |
| 5 | 11.52% |
| 6 | 5.76% |
Vince's Manufactured Grills purchased some machinery last year for $319,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest technology. The old machines are being sold for $125,000 to a related firm. What is the after-tax salvage value from this sale if the tax rate is 35 percent?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Begin Investing In Real Estate With The Ultimate Guide
Authors: Tadahikol T. Nakamura
1st Edition
979-8867848330
