What is the book value of the asset after five years

Reference no: EM133269717

Question - An asset costs $800000. The asset is depreciated straight-line to 0 value in 8 years. The asset is used in a 5-year project. At the end of the project, the asset is sold for $200000. The tax rate is 30%. Based on the above information answer the following questions:

Required -

(a) What is the book value of the asset after 5 years?

(b) Will you make a gain or loss on the sale of the asset when you sell the asset for $200000?

Reference no: EM133269717

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