Question

< Subject Test Note: You are attempting question 40 An equipment was purchased by a Company at the cost of $875,000. It was depreciated for five years on a straight-line basis to zero-salvage value. The market value of this equipment is $85,000. Tax rate applicable to this Company is 40%. Calculate the After-tax Salvage value. a. $85,000 b. $121,000 c. $90,000 d. $51,000 Answer СА OB OD Submit​

Answer 1

Answer:

at the cost of $875,000. It was depreciated for five years on a straight-line basis to zero-salvage value. The market value of this equipment is $85,000. Tax rate applicable to this Company is 40%. Calculate the After-tax Salvage value. a. $85,000 b. $121,000 c. $90,000