Tax payable or tax credit, Taxation

Tax Payable or Tax Credit

Stuart's Guitars, which has a company tax rate of 30%, is planning to sell one of its old lathes. The machine, purchased 5 years ago for $50,000, had an expected life of 15 years and an expected salvage value of zero. Assume that Stuart use straight line depreciation.

a) What amount of depreciation is being taken each year?

b) What has been the tax credit associated with this depreciation each year?

c) Stuart's Guitars have been offered $40,000 for the lathe. What is the tax payable or the tax credit associated with this sale?

d) If, instead the old lathe cost $4,000 to dispose of, what is the tax payable or the tax credit associated with this disposal?

e) If the sale price is $25,000 what is the tax payable or the tax credit associated with this sale?

Posted Date: 2/16/2013 5:08:51 AM | Location : United States







Related Discussions:- Tax payable or tax credit, Assignment Help, Ask Question on Tax payable or tax credit, Get Answer, Expert's Help, Tax payable or tax credit Discussions

Write discussion on Tax payable or tax credit
Your posts are moderated
Related Questions
i want some problems with solutions on karnataka value added tax 2003

How to raise an invoice with WCT for Civil construction job in Andar pradesh

On December 1 of the current year, Plen Limited purchased a franchise for $70,000.The franchise has a limited life of 15 years. Which one of the following amount represents the max

Hi Dear, I did not upload it yet, because I want you to tell me if you have the ability to do that within two hours or no,,!! The assignments are MC and three or four probl

I have 95 qustions and I need to get ur help for some of these qustions that I can not do it. the homwork will be avalble just for 2 hours on this Sanday

I got confused with the numbers on these parts: 1. "The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being

For purposes of this problem, ignore the possibility that there might be a disguised sale, assume that DEF uses the traditional method for making ยง 704(c) allocations, and finally

I still don''t know this yet but my teacher wants me to do this a i don''t know this topic?

Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. What is the maximum amount Donald can contribute to a Roth IRA?

William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe