A firm purchased equipment at a total cost of $287,000, which was depreciated straight - line over seven years. After five years, the equipment was sold for $98,900. What is the ATCF at a tax rate of 34 percent?
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- Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs that should be capitalized? A. $60,600 B. $66,100 C. $54,000 D. $59,400A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $7980 $8136 O No taxis to be paidNgo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costsamounted to $1,200; and one-year registration of the truck was $100. What is the total amount of costs thatshould be capitalized?A. $60,600B. $66,100C. $54,000D. $59,400
- Finance Steel PIc is selling an existing asset for $25,000. The asset was purchased three years ago at a cost of $100,000 and was depreciated based on the straight line method over a five-year life, which of the following is the tax benefit of this transaction, given a tax rate of 40%? a. $5,000 b. $7,000 c. $4,000 d. $6,000 An engineering company has a proposal to replace its existing machine with a new machine. The new machine costs $55,000 and has installation costs of $5,000. The machine will be depreciated using the straight-line method over five years. The new machine is expected to result in an incremental cost saving of $20.000. The firm has a 40% tax rate. The annual incremental after-tax cash flow from operations for year 1O a. $17,100O b. $15,500O c. $16,800O d. $14,700 A security analyst forecasts an expected return of 15% over the next year for Fenway Ltd's ordinary shares which have a beta of 1.5. If the risk-free rate is 4% and the market risk premium is 8%, which of…An equipment was purchased by a Company at the cost of $875,000. It was depreciated for five years on a straight-line basis to zero-salvage value. The market value of this equipment is $85,000. Tax rate applicable to this Company is 40%. Calculate the After-tax Salvage value. a. $85,000 b. $121,000 c. $90,000 d. $51,0001. A special manufacturing and handling device was purchased by Alfonso Manufacturing for $200,000 and is depreciated over MACRS. CFBT is estimated to amount to $800,000 for the first 2 years followed by $600,000 thereafter until the asset is retained. The effective tax rate, Te is 35% and interest is 10% per year. In present worth dollars determine the CFAT and determine if it was a viable purchase. (Note answer must be in a tabular format)
- Company FGH spent $10,000 to purchase equipment in year zero. The equipment is being depreciated to zero using straight line depreciation over a five-year tax life. At the end of the fourth year, the equipment is sold for $5,000. What is the after-tax salvage value of this equipment, assuming a tax rate of 40%?Help me pleaseAn asset was purchased for $180,000. The CCA rate for this asset was 25%. The effective tax rate was 40%. Assume books are closed and any tax credit for capital loss can be claimed immediately. Find the disposal tax effect for the asset if sold after 5 years for the following prices: a] $130,000 b] $35,000 c] $12,000
- Economics A company purchased a piece of equipment for $155,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $2,900. If the equipment is sold at end of 3 years for a value of $30,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $7980 O $8136 O No taxis to be paid ASAP PLEASEEconomics A company purchased a piece of equipment for $175,000 and sells it after 3 years. The equipment is depreciated by the MACRS method using a five-year period. The annual maintenance cost of the equipment is $3,000. If the equipment is sold at end of 3 years for a value of $100,000, what will be the taxes that has to be paid from the sale of the equipment? Assume that the tax rate is 35%. O $6790 O $11480 O $8136 O No taxis to be paidAn asset that was originally purchased for $60,818 is being depreciated straight-line over its useful life. 83% of the asset has been depreciated. The asset can be sold for $35,191. If the company's tax rate is 34%, what is the after-tax salvage of this asset? Express your answer to the nearest whole number.
