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Talia's Tutus bought a new sewing machine for $90,000 that will be depreciated over 5 years using double-declining-balance depreciation with a switch to straight-line.
Required:
a. Find the depreciation charge each year.
b. If the sewing machine is sold after 4 years for $26,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
- Required A
-Find the depreciation charge each year.
Required B
If the sewing machine is sold after 4 years for $26,000, what will be the after-tax proceeds on the sale if the firm's tax bracket is 35%?
After-tax proceeds
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