Question: can someone please help me solve this question and show me the work? thanks A company purchases an industrial laser for $132,000. The device has

can someone please help me solve this question and show me the work? thanks

A company purchases an industrial laser for $132,000. The device has a useful life of 4 years and a salvage value (market value) at the end of those four years of

$45,000.The before-tax cash flow is estimated to be $80,000 per year.

a. You, of course, suggested applying the 3-year MACRS (GDS) method instead of the straight-line method. Given an effective tax rate of 23%,

determine the depreciation schedule and the after tax cash flow.

b. Based on the MACRS depreciation schedule for this asset, if the industrial laser was sold for $75,000 in year two (consider year two to be the "year 2" row in the table in Part (a), what will be the amount of gain (depreciation recapture) or loss on the disposal of the asset at the end of this year?

EOY DEPRECIATION, $ ATCF, $

0 ----- -132,000

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2 ?? ??

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4 ?? ??can someone please help me solve this question and show me thework? thanks A company purchases an industrial laser for $132,000. The device

has a useful life of 4 years and a salvage value (marketvalue) at the end of those four years of $45,000.The before-tax cash

More Info GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) 15-year 0.0500 0.0950 0.0855 0.0770 0.0693 0.0623 0.0590 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 Year 3-year 0.3333 0.4445 0.1481 0.0741 5-yeara 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 10-year 0.1000 0.1800 0.1440 0.1152 0.0922 0.0737 0.0655 0.0655 0.0656 0.0655 0.0328 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0223 7-yeara 0.1429 0.2449 0.1749 0.1249 0.0893 0.0892 0.0893 0.0446 4 12 13 15 16 17 18 19 20 21 *These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000 These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places Print Done More Info GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) 15-year 0.0500 0.0950 0.0855 0.0770 0.0693 0.0623 0.0590 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 Year 3-year 0.3333 0.4445 0.1481 0.0741 5-yeara 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 10-year 0.1000 0.1800 0.1440 0.1152 0.0922 0.0737 0.0655 0.0655 0.0656 0.0655 0.0328 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0223 7-yeara 0.1429 0.2449 0.1749 0.1249 0.0893 0.0892 0.0893 0.0446 4 12 13 15 16 17 18 19 20 21 *These rates are determined by applying the 200% DB method (with switchover to the SL method) to the recovery period with the half-year convention applied to the first and last years. Rates for each period must sum to 1.0000 These rates are determined with the 150% DB method instead of the 200% DB method (with switchover to the SL method) and are rounded off to four decimal places Print Done

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