Cost recovery. Richardses Tree Farm, Inc purchased a new aerial tree trimmer for $87,000 It is...

 

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Cost recovery. Richardses Tree Farm, Inc purchased a new aerial tree trimmer for $87,000 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 Me and MACRS, was used for the depreciation schedule, what is the after tax cash flow from the sale of the trimmer (use a 40% tax rate) i a. the sales price was $32,000 b. the sales price was $27,178 807 c. the sales price was $22,0007 a. If the sales price is $32,000, what is the after-tax cash flow? (Round to the nearest cent) Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this fable Year 1 2 #3CONQUAMOL 4 5 6 7 8 9 10 3-Year 33.33% 44 45% 14 81% 741% 5-Year 20.00% 32.00% 19 20% 11.52% 11 52% 5.76% 7.-Year 14.29% 24 40% 17.49% 12.49% #93% 8.93% 445% 10-Year 10.00% 18.00% 14 40% 11.52% 022% 737% 655% 6.55% 655% 6.55% 3.20% O + Cost recovery. Richardses Tree Farm, Inc purchased a new aerial tree trimmer for $87,000 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 Me and MACRS, was used for the depreciation schedule, what is the after tax cash flow from the sale of the trimmer (use a 40% tax rate) i a. the sales price was $32,000 b. the sales price was $27,178 807 c. the sales price was $22,0007 a. If the sales price is $32,000, what is the after-tax cash flow? (Round to the nearest cent) Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this fable Year 1 2 #3CONQUAMOL 4 5 6 7 8 9 10 3-Year 33.33% 44 45% 14 81% 741% 5-Year 20.00% 32.00% 19 20% 11.52% 11 52% 5.76% 7.-Year 14.29% 24 40% 17.49% 12.49% #93% 8.93% 445% 10-Year 10.00% 18.00% 14 40% 11.52% 022% 737% 655% 6.55% 655% 6.55% 3.20% O +

Answer rating: 100% (QA)

To calculate the aftertax cash flow from the sale of the tree trimmer we need to follow these steps ... View the full answer