Use this information for the next two problems VOLs Inc purchased a Mask Maker Model 3 for $100,000 including shipping and installation The equipment falls in the 5 year MACRS depreciation class, with depreciation rates given below sold it after 3 years for $25,000 VOL's tax rate is 25 Year 1 2 3 4 5 6 Depreciation 20 00 32 00 19 20 11 52 11 52 5 76 a)Calculate the book value of Machine when it is sold b) Assume that the book value of the machine when it is sold is $15,500 Calculate the after tax salvage value of selling the machine DO NOT USE EXCEL

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Question: Use this information for the next two problems. VOLs Inc. purchased a Mask Maker Model 3 for $100,000 including shipping and installation. The equipment falls

"Use this information for the next two problems. VOLs Inc. purchased a Mask Maker Model 3 for $100,000 including shipping and installation. The equipment falls in the 5 year MACRS depreciation class, with depreciation rates given below. sold it after 3 years for $25,000. VOL's tax rate is 25%

Year	1	2	3	4	5	6
Depreciation	20.00%	32.00%	19.20%	11.52%	11.52%	5.76%

a)Calculate the book value of Machine when it is sold.

b) Assume that the book value of the machine when it is sold is $15,500. Calculate the after-tax salvage value of selling the machine.

DO NOT USE EXCEL!

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