Question
You own some equipment that you purchased 4 years ago at a cost of $220,400. The equipment is 5-year property for MACRS. You are considering
You own some equipment that you purchased 4 years ago at a cost of $220,400. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $86,000. Which is the after tax salvage value of this equipment if your if your tax rate is 35 percent?
| MACRS 5-year property | |
| Year | Rate |
| 1 | 20.00% |
| 2 | 32.00% |
| 3 | 19.20% |
| 4 | 11.52% |
| 5 | 11.52% |
| 6 | 5.76% |
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The Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
13th Global Edition
1292409487, 978-1292409481
