Finance

A company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000.

a. What is the book value of the equipment?

b. If the company sells the equipment today for $180,000, and its tax rate is 35%, what is the after-tax cash flow from selling it?

  1. 0
  2. 0
  3. 16
asked by Nabil

Respond to this Question

First Name

Your Response

Similar Questions

  1. federal tax

    Carl bought a heavy-duty truck (5-year class recovery property) for his business service on April 30. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The

    asked by bree on March 1, 2010
  2. accounting

    Information about a project Darcy Company is considering is as follows: Investment $1,000,000 Revenues $700,000 Variable costs $140,000 Fixed out-of-pocket costs $80,000 Cost of capital 12% Tax rate 40% The property is considered

    asked by jim1 on March 12, 2011
  3. UALR

    Information about a project Darcy Company is considering is as follows: Investment $1,000,000 Revenues $700,000 Variable costs $140,000 Fixed out-of-pocket costs $80,000 Cost of capital 12% Tax rate 40% The property is considered

    asked by jldix on March 12, 2011
  4. Ethics

    M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings

    asked by Chris M on November 11, 2010
  5. Managerial Accounting

    M.K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted that the company’s earnings

    asked by raja on November 12, 2010
  6. FInance

    Assignment 2: Lease vs. Buy Your employer, Barnaby Well Company, is considering the acquisition of a new drill truck and your boss has asked you to evaluate the decision that she has made to buy the truck. The truck has a purchase

    asked by Deanna on November 10, 2012
  7. accounting

    Van Meter Company is considering the purchase of the following computer equipment, which is considered 5-year property for tax purposes: Acquisition cost $500,000 Annual cash flow $180,000 Annual operating costs $30,000 Expected

    asked by jim1 on March 12, 2011
  8. UALR

    Van Meter Company is considering the purchase of the following computer equipment, which is considered 5-year property for tax purposes: Acquisition cost $500,000 Annual cash flow $180,000 Annual operating costs $30,000 Expected

    asked by jldix on March 12, 2011
  9. Statistics

    A certian company enjoyed 3.5% profits in year 1 over its revenue in Year 0. In Year 2, it enjoyed 5.75% profits over Year 1. In Year 3, it posted 1.25% profits over Year 2. What single, constant profit over this period of years

    asked by Ben on May 3, 2011
  10. Stats

    A certian company enjoyed 3.5% profits in year 1 over its revenue in Year 0. In Year 2, it enjoyed 5.75% profits over Year 1. In Year 3, it posted 1.25% profits over Year 2. What single, constant profit over this period of years

    asked by Anonymous on May 4, 2011

More Similar Questions