An asset used in a 4-year project falls in the 5-year MACRS class ( MACRS Table

Question

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,540,000 and will be sold for $4,120,000 at the end of the project.

If the tax rate is 34 percent, what is the aftertax salvage value of the asset?

  
rev: 09_18_2012

An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,540,000 and will be sold for $4,120,000 at the end of the project.

Explanation / Answer

BV4 = $18,540,000

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