Talias Tutus bought a new sewing machine for $40,000 that will be depreciated over 5 years using

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Talia’s Tutus bought a new sewing machine for $40,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line.

a. Find the depreciation charge each year.

b. If the sewing machine is sold after 3 years for $22,000, what will be the after-tax proceeds on the sale if the firm’s tax bracket is 30%?

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Fundamentals of Corporate Finance

ISBN: 978-1260566093

10th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Question Posted: Oct 29, 2019 11:02 AM

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Talias Tutus bought a new sewing machine for $40,000 that will be depreciated over 5 years using

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a Year Depreciation Book Value end of year 1 16000 2...View the full answer

Fundamentals of Corporate Finance

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