Question: Talia's Tutus bought a new sewing machine for $40,000 that will be depreciated using the MACRS depreciation schedule for a 5-year recovery period. a. Find

Talia's Tutus bought a new sewing machine for $40,000 that will be depreciated using the MACRS depreciation schedule for a 5-year recovery period.

a. Find the depreciation charge each year.

b. If the sewing machine is sold after 3 years for $22,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?

Talia's Tutus bought a new sewing machine for $40,000 that

Sewing machine cost Recovery period3 Sold after (b) Selling price Tax rate S40,000.00 5.00 years 3.00 years $22,000.00 35.00%

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