Question: A widget-maker is buying a new machine. The machine costs 72 and is being depreciated over 8 years using straight line depreciation. The firm has

A widget-maker is buying a new machine. The machine costs 72

A widget-maker is buying a new machine. The machine costs 72 and is being depreciated over 8 years using straight line depreciation. The firm has a marginal tax rate of 33%. What is the capital gain on the machine if it is sold after 1 years for 35. 28 margin of error +/2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 27 1 pts Lion's Share Inc. just bought a $3 million machine that will be depreciated over its 10 year life using straight line depreciation. The marginal tax rate is 20%. What is Lion's...

Lion's share inc just bought a 4 million dollar machine that will be depreciated over its 20 year life using straight line depreciation. The marginal tax rate is 38%. What is Lion Share's after tax...

1 pts Question 27 Lion's Share Inc. just bought a $4 million machine that will be depreciated over its 20 year life using straight line depreciation. The marginal tax rate is 21%. What is Lion's...

Lion's Share Inc. just bought a $3 million machine that will be depreciated over its 10 year life using straight line depreciation. The marginal tax rate is 28%. What is Lion's Share after tax...

I am having questions with these questions about widgets. Can someone help with all 3? Question 3 1 pts A widget-maker is considering upgrading his machinery for a cost of 72. The change would...

A widget-maker is buying a new machine. The machine costs 93 and is being depreciated over 9 years using straight line depreciation. The firm has a marginal tax rate of 39%. What is the capital gain...

A widget-maker is buying a new machine. The machine costs 96 and is being depreciated over 10 years using straight-line depreciation. The firm has a marginal tax rate of 22%. What is the capital gain...

Question 1 Asset cost $35,000 Prepaid Insurance $5,000 Maintenance costs $3,000 Accumulated Depreciation $10,000 Book Value $________ Based on the information above, the book value of the tractor is...

Use the following information to answer this two - part question. A firm is considering investing in a new machine that will cost $ 4 0 0 , 0 0 0 and will be depreciated straight - line over five...

Acme Toy Company is considering the purchase of a machine for their production line. Information on the purchase is shown below 5 Calculate the initial outlay associated with the project. What is the...

Calculate the payback period for project B. (Answer expressed in years and months) 3.2 Calculate the accounting rate of return for project A. (Answer expressed to 2 decimal places) A B Initial cost...

Mr. John Boxing (SIN 527-000-061) was born in Vancouver on August 28, 1951. He has spent most of his working life as a pianist and songwriter. He and his family live at 111 WWW Street, Vancouver,...

A perfectly competitive firms supply curve follows the upward sloping segment of its marginal cost curve above the a. average total cost (ATC) curve. b. average variable cost (AVC) curve. c. average...

What are the key factors in preparing for a job interview? Identify 1 0 common interview questions and customize your answers to your own strengths and weaknesses.

C Have you ever witnessed the beginning tremors of a smart mob in any of the social networks of which you are a part? What kinds of goals might motivate you to join a smart mob?

In Chapter 7, we talked about family as an example of interpersonal relationships. Now think about your family as a group. What are the familys common goals? What do the members of your family see as...

Think about your experience as part of a group to which you no longer belongan old job, your high school class, or a club that youre not a part of anymore. Did the group go through all five phases...