What is the book value of the machine

Assignment Help Financial Management

Reference no: EM13889399

Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the percentages given in Table 4.2 on page 000. Assume a 40% tax rate.

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: $100,000; $56,000; $23,200; and $15,000.

Reference no: EM13889399

Questions Cloud

What is dirty price of this bond if market rate of return : Toy World bonds have a face value of $1,000, mature in13 years, pay interest semi annually, and have a coupon rate of 6.5 percent. The next interest payment will be paid four months from today. What is the dirty price of this bond if the market rate ..

What makes a cost driver accurate and appropriate : What makes a cost driver accurate and appropriate? What is the formula for assigning activity cost pools to products? What are the benefits of activity-based costing?

Use contemporary case tools in process and data modeling : Use contemporary CASE tools in process and data modeling

Find relevant cash flows with proposed marketing campaign : Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccessful in sharing this growt..

What is the book value of the machine : Troy Industries purchased a new machine 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period using the percentages given in Table 4.2 on page 000. Assume a 40% tax rate. What is the book value of the machine?

What steps are involved in developing activity-based costing : What steps are involved in developing an activity- based costing system? Explain the preparation and use of a value-added/ non-value-added activity flowchart in an ABC system.

Annual payment corporate bond has a market price : A 10-year annual payment corporate bond has a market price of $1058. It pays annual interest of $60 and its required rate of return is 4 percent. By how much is the bond mispriced?

What were wendys inventory turns : McDonald's) The following figures are taken from the 2003 financial statements of McDonald's and Wendy's. ! Figures are in million dollars. I n 2003, what were McDonald’s inventories turn? What were Wendy' s inventory turns?

Discuss ids and ips, a signature is a digital certificate : When discussing IDS and IPS, a signature is a digital certificate used to identify the author of a rule.

User Account

All Pages