purchased a new machine 3 year(s) ago for $78,000. It is being
depreciated under MACRS with a 5-year recovery period using
the schedule Assume 21% ordinary and capital gains
tax rates.
a. What is the book value of the machine?
b. Calculate the firm's tax liability if it sold the
machine for each of the following amounts: $93,600;
$54,600; $22,620; and $15,800.
- Book Value And Taxes On Sale Of Assets Troy Industries Purchased A New Machine 3 Year S Ago For 78 000 It Is Being 1 (134.08 KiB) Viewed 46 times
Data table 10 years 12% First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 5 12% 9% 9% 5% 9% 8% 7 9% 7% 4% 6% 9 6% 698 11 49 Totals 100% 10090 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while Print Done