1. Reversing Rapids Co. purchases an asset for $175,054. This asset qualifies as
ID: 2651278 • Letter: 1
Question
1. Reversing Rapids Co. purchases an asset for $175,054. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,889.
Calculate accumulated depreciation over 4 years. Round the answer to two decimals.
answer is 144,804.67
2.Reversing Rapids Co. purchases an asset for $149,486. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $12,456.
Calculate book value of an asset. Round the answer to two decimals.
answer is 25,831.18
3. Reversing Rapids Co. purchases an asset for $196,845. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $14,962, what is the cash flow from disposal?
Calculate gain or loss on disposal. Round the answer to two decimals.
answer is -19,052.82
4.Reversing Rapids Co. purchases an asset for $189,958. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of four years for $12,584.
Calculate tax credit on disposal. (The answer should be entered as positive value). Round the answer to two decimals.
answer is 6,072.22
5.Reversing Rapids Co. purchases an asset for $125,568. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,035.
Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.
answer is 13,533.95
Please explain with formula
Thank you
Explanation / Answer
1)
C Cost of Asset 1,75,054 Year Depreciation Rate Depreciation 1 20% 35010.80 2 32% 56017.28 3 19.20% 33610.37 4 11.52% 20166.22 D Accumulated Depreciation ( 1+2+3+4) 144804.67Related Questions
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