What is the after-tax salvage value

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Reference no: EM132006397

1. ABC Company purchased $45,051 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $4,789. What is the After-tax Salvage Value if the tax rate is 29%?

2. A project requires $94,251 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Reference no: EM132006397

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