Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. It is...
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Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 35tax rate) if a. the sales price was $35,000? b. the sales price was $29,053.20? c. the sales price was $19,000? Data table a. If the sales price is $35,000, what is the after-tax cash flow? (Round to the nearest cent.) b. If the sales price is $29,053.20, what is the after-tax cash flow? $29,053.20 (Round to the nearest cent.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20.00% 14.29% 10.00% c. If the sales price is $19,000, what is the after-tax cash flow? 2 44.45% 32.00% 24.49% 18.00% 3 14.81% 19.20% 17.49% 14.40% $ 22,518.62 (Round to the nearest cent.) 4 7.41% 11.52% 12.49% 11.52% 5 11.52% 8.93% 9.22% 6 5.76% 8.93% 7.37% 7 8.93% 6.55% 8 4.45% 6.55% 9 6.55% 6.55% 10 3.28% - X Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 35tax rate) if a. the sales price was $35,000? b. the sales price was $29,053.20? c. the sales price was $19,000? Data table a. If the sales price is $35,000, what is the after-tax cash flow? (Round to the nearest cent.) b. If the sales price is $29,053.20, what is the after-tax cash flow? $29,053.20 (Round to the nearest cent.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20.00% 14.29% 10.00% c. If the sales price is $19,000, what is the after-tax cash flow? 2 44.45% 32.00% 24.49% 18.00% 3 14.81% 19.20% 17.49% 14.40% $ 22,518.62 (Round to the nearest cent.) 4 7.41% 11.52% 12.49% 11.52% 5 11.52% 8.93% 9.22% 6 5.76% 8.93% 7.37% 7 8.93% 6.55% 8 4.45% 6.55% 9 6.55% 6.55% 10 3.28% - X
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