A company invests $25,173 in new machinery, which was depreciated using the five-year MACRS schedule shown...

 

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A company invests $25,173 in new machinery, which was depreciated using the five-year MACRS schedule shown above. If the company sold the machinery immediately after the end of year 3 for $11,875, what is the after-tax salvage value from the sale, given a tax rate of 24%? Enter your answer in dollars and round to the nearest dollar. MACRS Depreciation Rate Year 1 20% Year 2 32% Year 3 Year 4 Year 5 19.2% 11.52% Year 6 11.52% 5.76% A company invests $25,173 in new machinery, which was depreciated using the five-year MACRS schedule shown above. If the company sold the machinery immediately after the end of year 3 for $11,875, what is the after-tax salvage value from the sale, given a tax rate of 24%? Enter your answer in dollars and round to the nearest dollar. MACRS Depreciation Rate Year 1 20% Year 2 32% Year 3 Year 4 Year 5 19.2% 11.52% Year 6 11.52% 5.76%

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To calculate the aftertax salvage value of the machinery we need to first determine the adj... View the full answer