Two years ago, your firm bought a new machine for $5,000. The machine was depreciatedon a MACRS 3 year schedule. Today, your company will sell the machine for $4,000. Thetax rate is 33%. What are the after tax proceeds from the sale? Answer to 2 decimals, forexample 105.21.MACRS 3 YearYear Amount133.33%244.45%314.81%47.41%

Here,Purchase Price of Machine is $5,000Time Period when machine purchased is 2 years agoSale Price…

Answered: Two years ago, your firm bought a new…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 77IIP

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Four years ago, an investor purchased a five door-apartment for P5.5M. Income from rent exceeded maintenance and insurance cost by P480,000.00 per year. If the property is sold now for P7.55M with an 8.25% income tax charged from capital gain determine the after tax-rate of return realized on the investment.Ans: 14%
An asset with initial cost base of 6 million was bought 5 years ago.At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gain (loss) tax rate 40%,what is the net proceeds resulted from selling the asset? Type your answer in ms word
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19: ? Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is the after-tax cash flow from this sale if the tax rate is 35%? The applicable MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. A. $19,776.80 B. $18,846.67 D. $20,408.20 E. $25,153.33 C. $24,223.20
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