An asset used in a four-year project falls in the five-year MACRS class for tax purposes.The asset has an acquisition cost of $6,110,000 and will be sold for $1,310,000 at the endof the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset?Refer to Table 8.3. (Do not round intermediate calculations and enter your answer indollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)Aftertax salvage valuees( Prev7 of 10Next > TABLE 8.3RECOVERY PERIOD CLASSDepreciation under ModifiedAccelerated Cost RecoverySystem (MACRS)YEAR3 YEARS5 YEARS7 YEARS10 YEARS15 YEARS20 YEARS33332000.1429.10000500037502444532002449.1800.095007219314811920.1749.1440.0855.066774.0741.1152.1249.1152.0770.06177.11520893.0922.0693.0571305760892.0737.0623.052857.0893.0655.0590.048888.0446.0655.0590.045229..0656.0591.0446210.0655.0590.0446111.0328.0591.0446212.0590.0446113.0591.044621415.0590.0446116.0591.0446217.0295.0446118.0446219044612004462210446102231Depreciation is expressed as a percent of the asset's cost. These schedules are based on the IRS publication 946. How to Depreciate Propertyand other details on depreciation are presented later in the chapter. Note that five-year depreciation actually caTIes over six years because theIRS assumes purchase is made in midyear.

MACRS is accelerating depreciation method in which depreciation is more beginning and decrease in…

n asset used in a four-year project falls in the five-year MACRS class for tax purposes. he asset has an acquisition cost of $6,110,000 and will be sold for $1,310,000 at the end the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? efer to Table 8.3. (Do not round intermediate calculations and enter your answer in ollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Aftertax salvage value

n asset used in a four-year project falls in the five-year MACRS class for tax purposes. he asset has an acquisition cost of $6,110,000 and will be sold for $1,310,000 at the end the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? efer to Table 8.3. (Do not round intermediate calculations and enter your answer in ollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Aftertax salvage value

Essentials Of Investments

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ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

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Chapter1: Investments: Background And Issues

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An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,160,000 and will be sold for $1,360,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Refer to Table 8.3. Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89. Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $5.7 million and will be sold for $1.8 million at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Refer to the MACRS schedule. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567) Aftertax salvage value
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $4,750,000 and will be sold for $1,375,000 at the end of the project. If the tax rate is 24 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) Aftertax salvage value
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,300,000 and will be sold for $2,760,000 at the end of the project. If the tax rate is 22 percent, what is the aftertax salvage value of the asset? Refer to (MACRS schedule) (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567) Aftertax salvage value 4
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