Three years ago, your firm purchased a forklift for Rs.10,000. It is being depreciated straight line to a salvage value of zero in two more years. If your firm sells the forklift today for Rs.5,000, it will receive only Rs.4,600 after taxes.

(a)      What is the annual depreciation on the machine?

(b)      What is the current book value of the machine?

(c)      What is your firm's marginal tax rate?

Answer rating: 100% (QA)

Requirement a Purchase Price Rs 10000 Useful Life Expired Period Remaining Period 3 year... View the full answer