please post work and I\'ll give you 5 stars. thanks! You own some equipment that

Question

please post work and I'll give you 5 stars. thanks!

You own some equipment that you purchased 4 years ago at a cost of $216,000. The equipment is 5 year property for MACRS. You are considering selling the equipment today for $75,500. Which one of the following statements is correct if your tax rate is 35%?

Year-------- Rate
1------------20.00%
2------------ 32.00%
3------------ 19.20%
4-------------11.52%
5 -------------11.52%
6------------- 5.76%


A. The tax due on the sale is $26,425
B. The book value today is $178,675.20
C. The accumulated depreciation to date is $37,324.80
D. The taxable amount on the sale is $37,324.80
E. The aftertax salvage value is $62,138.68

Explanation / Answer

Hi, Option A is correct. (75000*.35) = 26425 Thanks, Aman

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