What is the after-tax salvage value

Assignment Help Finance Basics
Reference no: EM132441036

A company is selling an equipment after four years for $37,795. The equipment was originally purchased for $137,006. The tax rate is 18%.The equipment is classified as a 5-year property. What is the after-tax salvage value?

The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

Reference no: EM132441036

Questions Cloud

Calculate Rolling Spring Projected Benefit Obligation : If no change in actuarial estimates occurred during Year 1, calculate Rolling Spring's Projected Benefit Obligation at December 31, Year 1
Discuss the Global Business Speaks in English : What about these three article discussed- communication, language, culture , english or global business?Discuss the Global Business Speaks in English
Describe the behavioral challenges in achieving efficiency : Describe the behavioral challenges in achieving efficiency in relation to efficient capital market.
Discuss mm later models : Discuss MM's later models (1963) in which they relaxed the no-tax assumption and added corporate taxes.
What is the after-tax salvage value : The tax rate is 18%.The equipment is classified as a 5-year property. What is the after-tax salvage value?
Key users of financial statements : The four key users of financial statements are owners/managers, lenders, investors and governments.
Did the development of technology make our life easier : Children lack the ability to communicate and interact because their life turned to online mode.Has the Internet made people's lives less social and personal?
How much Baltimore Company should report for investment : Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018
What is the arr of stump storage co : Stump Storage Co. is expecting to generate after-tax income of $155,708, $159,312, and $161,112 for each of the next three years.

Reviews

Write a Review

Finance Basics Questions & Answers

  Pink corporation has two shareholders

Pink Corporation acquired land and securities in a § 351 tax-free exchange in 2011. On the date of the transfer, the land had a basis of $720,000 and a fair market value of $1 million, and the securities had a basis of $110,000 and a fair market valu..

  Future value of an ordinary annuity cecelia thomas is a

future value of an ordinary annuity cecelia thomas is a sales executive at a baltimore firm. she is 25 years old and

  Which alternative has the lowest effective cost

When you are evaluating alternative mortgages, you may be able to obtain a lower rate by making an upfront payment. This comparison will not include an after-tax comparison.

  Explain the two primary functions of bank capital

Explain the two primary functions of bank capital, and how bank capital might be differently perceived by regulators, depositors

  Investment gain in the course of the month

This right will cost them $1 per share, and the right is good for the next month. A month later, the shares are selling for $35. Assuming that the owner of the calls exercises her right to buy your shares, how much was your total investment gain..

  Leadership on the big screen

Select a movie from the following list. (Alternately, your instructor may approve an appropriate movie not listed here).

  Preparing fundamental financial analysis

Prepare an 8- to 10-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on your chosen company's financial statements:

  What will be its per-share dividend in 2009

The company had a 40% dividend payout ratio in 2008. If Bowles wants to maintain this payout ratio in 2009, what will be its per-share dividend in 2009?

  Accessing financial condition of centerville

Use the five-year-trend data in the table to evaluate whether Centerville's (C) revenue and expenditures are balanced. In summarizing Centerville's financial situation over a five-year period, the table includes five factors:

  Question regarding the cost of debt and equity

The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and..

  The expected return on jk stock is 1578 percent while the

the expected return on jk stock is 15.78 percent while the expected return on the market is 11.34 percent. the stocks

  Percentage change in the price of bond dave

If interest rates suddenly rise by 5 percent, what is the percentage change in the price of Bond Dave? Enter the answer with 4 decimals (e.g. 0.0123).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd