You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a s

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a s

Post by answerhappygod »

You purchased a machine for $1 million three years ago andhave been applying straight-line depreciation to zero for aseven-year life. Your tax rate is 35%. If you sell the machinetoday (after three years of deprecaition) for $700,000, what isyour incremental cash flow from selling the machine?
Please show all work so that I can learn thematerial. Thank you!
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”