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tthompson7186
13.12.2019 •
Business
An asset used in a 4-year project falls in the 5-year macrs class for tax purposes. the asset has an acquisition cost of $9,000,000 and will be sold for $2,520,000 at the end of the project. if the tax rate is 24 percent, what is the aftertax salvage value of the asset? refer to (macrs schedule) (do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567)
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Ответ:
$2,288,448
Explanation:
In order to calculate after-tax salvage value we first compute depreciation as per MACRS 5 year class.
MACRS 5 years states that following depreciation is chargeable in corresponding years,
Year 1 = 20%
Year 2 = 32%
Year 3 = 19.2%
Year 4 = 11.52%
We now calculate total depreciation on asset over the useful life of 4 years.
DEP Y1 = 9,000,000 * 0.20 = $1,800,000
DEP Y2 = 9,000,000 * 0.32 = $2,880,000
DEP Y3 = 9,000,000 * 0.192 = $1,728,000
DEP Y4 = 9,000,000 * 0.1152 = $1,036,800
We can now calculate Net book value at the end of 4th year
NBV = 9,000,000 - 1,800,000 - 2,880,000 - 1,728,000 - 1,036,800
NBV = $1,555,200
Taxable value = Sale price - NBV
Taxable value = 2,520,000 - 1,555,200 = $964,800
Tax = $964,800 * 0.24 = $231,552
After tax salvage value = 2,520,000 - 231,552 = $2,288,448
Hope that helps.
Ответ:
(x - y) = 2x - 6
Rewrite the first equation so that y = 21 - x
Now substitute y in the second equation, and solve for x.
Then solve for y