lomework: Chapter 9 Homework Sav core: 0 of 1 pt 8 of 11 (10 complete) HW Score:
ID: 2790199 • Letter: L
Question
lomework: Chapter 9 Homework Sav core: 0 of 1 pt 8 of 11 (10 complete) HW Score: 74 4396, 819 of 11 p P 9-19 (similar to) E Question Help You purchased a machine for S1 13 million three years ago and have been applying straight-line depreciation to zero for a seven-year life Your tax rate is 35% If sell the machine today (after three years of depreciation) for $792.000, what is your incremental cash flow from selling the machine? you Your total incremental cash flow will be (Round to the nearest cent)Explanation / Answer
1) Calculation of Incremental cash flow :
Annual depreciation on machine = $1,130,000 / 7 years
= $161,429
Total 3 years depreciation = $484,287 *($161,429*3)
WDV of the machine = $1,130,000 - $484,287
= $645,713
Incremental cash flow = $792,000 - $645,713
= $146,287
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