After-tax Salvage Value Year 5-year 1 23 20.00% 32.00% 19.20% 4 11.52% 5 11.52% 6 5.76%...

 

1. 
   

Transcribed Image Text:

After-tax Salvage Value Year 5-year 1 23 20.00% 32.00% 19.20% 4 11.52% 5 11.52% 6 5.76% The Honey Bee Co. purchased some equipment three years ago at a cost of $36,500. The equipment is 5-year property for MACRS. Today, the company sold that equipment for $18,900. What is the aftertax salvage value if the applicable tax rate is 34%? After-tax Salvage Value Year 5-year 1 23 20.00% 32.00% 19.20% 4 11.52% 5 11.52% 6 5.76% The Honey Bee Co. purchased some equipment three years ago at a cost of $36,500. The equipment is 5-year property for MACRS. Today, the company sold that equipment for $18,900. What is the aftertax salvage value if the applicable tax rate is 34%?

Answer rating: 100% (QA)

Youve provided the salvage value table for a 5year property under MACRS Modified Accelerated Cost Re... View the full answer