An equipment's with 5 years useful life is with initial cost of $5,000. After 5 years,...

 

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An equipment's with 5 years useful life is with initial cost of $5,000. After 5 years, the equipment's useful life will be 0. The equipment's value will be depreciated linearly. Tax rate=30%. What is the after tax residual value of this equipment at the end of 3th year if the equipment was sold at 4,000. An equipment's with 5 years useful life is with initial cost of $5,000. After 5 years, the equipment's useful life will be 0. The equipment's value will be depreciated linearly. Tax rate=30%. What is the after tax residual value of this equipment at the end of 3th year if the equipment was sold at 4,000.

Answer rating: 100% (QA)

To calculate the aftertax residual value of the equipment at the end of the 3rd year we first need t... View the full answer