Question: Blackjack Inc. wants to replace a 9.year-old machine with a new machine that is more efficient. The old machine cost 565327 when new and has

Blackjack Inc. wants to replace a 9.year-old machine with a new machine that is more efficient. The old machine cost 565327 when new and has a current book value of $17615. Blackjack can sell the machine to a foreign buyer for 510968. Blackjack's tax rate is 33%. What is the effect of the sale of the old machine on the initial outlay for the new machine, to the nearest dollar

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!

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $69712 when new and has a current book value of $17855. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $70,000 when new and has a current book value of $15,000. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $67631 when new and has a current book value of $18040. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $67458 when new and has a current book value of $15615. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $68681 when new and has a current book value of $15346. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $69064 when new and has a current book value of $17937. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $69219 when new and has a current book value of $17225. Blackjack can sell the...

Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $65472 when new and has a current book value of $19113. Blackjack can sell the...

How does the use of a perpetual inventory system affect the accounts on the work sheet?

One of our employees, Tommy Trout, will be using his vacation entitlement for two weeks, starting on June 29, 2020. Since he will be on vacation during Canada Day, will the company still have to pay...

Nacho Libre SA . has 3 , 0 0 0 , 0 0 0 common shares outstanding that trade for $ 2 0 . 0 0 per share. The company has also issued one bond with a par value of $ 8 0 , 0 0 0 , 0 0 0 that currently...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...