Short-Term (Operating) financial planning begins with the forecast. Based on this forecast, operating expenses can be estimated and then pro forma income statement and cash budget can be prepared.

The cost of a new machine is $40,000 and the new machine takes $2,000 to install. At the end of its useful life, its salvage value is $5,000. Under the modified accelerated cost recovery system (MACRS), what is the depreciable value of the new machine?

 

Answer rating: 100% (QA)

step 1 Identify Relavent costs 1 Purchase cost40000This is the cost of the machine itself 2 Installa... View the full answer