A corporation purchased a machine for $60,000 five years ago It had an estimated life of 10 years and an estimated salvage value of $9,000 The current BV of this machine is $34,500 If the current M V of the machine is $40,500 and the effective income tax rate is 29 , what is the after tax investmen...

A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10

Question:

A purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated of $9,000. The current BV of this machine is $34,500. If the current M V of the machine is $40,500 and the effective income tax rate is 29%, what is the after-tax investment value of the machine? Use the outsider viewpoint.
(a) $28,755
(b) $40,500
(c) $38,760
(d) $37,455
(e) $36,759 Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...