Calculate the hourly tax saving resulting from depreciation

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A company having a cost of capital rate of 8 % purchases a $300,000 tractor. This machine has an expected service life of 4 years and will be used 2,500 hr per year. The tires on this machine cost $45,000. The estimated salvage value at the end of 4 years is $50,000. Calculate the hourly tax saving resulting from depreciation. Assume that the machine is a 5-yr type property and that there had been no gain on the exchange that procured the machine. The company's tax rate is 37o/o under the tax code

Reference no: EM131098922

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Calculate the hourly tax saving resulting from depreciation : A company having a cost of capital rate of 8 % purchases a $300,000 tractor. This machine has an expected service life of 4 years and will be used 2,500 hr per year. The tires on this machine cost $45,000. The estimated salvage value at the end of 4 ..

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