Book value of this equipment at the end of year

Reference no: EM1344377

Morris Motors just purchased some MACRS 5-year property at a cost of $216,000. Which one of the following will correctly give you the book value of this equipment at the end of year 2?

MACRS 5 year property

YEAR RATE
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%

Reference no: EM1344377

Questions Cloud

Value of the tax benefits from depreciation : The cost of capital is 14 percent, and the firm's tax rate is 40 percent - Estimate the present value of the tax benefits from depreciation

Explain what is the amount of the sales : Explain what is the amount of the sales that should be used when evaluating the addition of the lower-priced handbags?

Using capm approach to find cost of common stock : You are trying to compute the price of a preferred stock you are examining. This preferred stock has an yearly dividend of $5 per share and a par value of $30.

Explain what is the amount of the initial cash flow : Explain what is the amount of the initial cash flow for this expansion project - current manufacturing facility

Book value of this equipment at the end of year : Which one of the following will correctly give you the book value of this equipment at the end of year 2

Direct and indirect costs of bankruptcy : Illustrate out the direct and indirect costs of bankruptcy. In brief explain each.

Describing online services provided by selected companies : Identify and briefly describe the online services provided by the selected companies (e.g. online catalogue search, online information search.

Optimal debt level-unlevered firm and financial distress : A Corporation is unlevered, zero growth firm with expected EBIT of $4 million and corporate tax rate of 40% Find out the optimal debt level according to MM with corporate taxes (with no financial distress)?

Subdividing address block among four different customers : The ISP needs to subdivide the address block among four different customers, requiring 29, 28, 27, and 26 hosts respectively.

User Account

All Pages