1 answer

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project....

Question:

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project. The equipment originally cost $20 million

AFTER TAX SALVAGE VALUE Karsted Air Services is now in the final year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $5 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000. $

Answers

Book value as on date of sale=Cost-Accumulated Depreciation

=20*(1-0.8)

=$4 million

Hence gain on sale =(5-4)=$1 million

After-tax salvage value=Sale proceeds-(Tax rate*Gain on sale)

=5-(1*0.3) million

=$4,700,000

.

Similar Solved Questions

1 answer
Find a maximum profit for a firm if its total revenue function is TR = 50Q...
Find a maximum profit for a firm if its total revenue function is TR = 50Q ‒ Q2 and its total cost function is TC = 100 ‒ 4Q + 2Q2...
1 answer
You are given a flask with liquid media containing a population of S. pombe cells that...
You are given a flask with liquid media containing a population of S. pombe cells that have a temperature sensitive mutation of a gene that causes complete loss of function of the gene product at the restrictive temperature. The flask had been incubating at the permissive temperature before it was g...
1 answer
But may not necessarily have any significant if it is not close to Any piece of...
but may not necessarily have any significant if it is not close to Any piece of matter in the universe can be said to always possess any other matter acceleration due to gravity, weight weight, mass mass, weight acceleration due to gravity, mass mass, acceleration due to gravity...
1 answer
2. For the cash flows shown below, determine the total equivalent present worth & the equivalent...
2. For the cash flows shown below, determine the total equivalent present worth & the equivalent annual worth in years 1 through 5. The interest rates specified are 10% for the years 1-3 and 12% for years 4 & 5. Draw the cash flow diagram as well. (Hint: Please note the different interest ra...
1 answer
(1) For the standard Brownian motion, (W(t),t2 0], what is the expected first passage time, E(ta),...
(1) For the standard Brownian motion, (W(t),t2 0], what is the expected first passage time, E(ta), for a > 0, where ta-inf{t : W(t) 2 a]? The following "answers" have been proposed (b) a/2. (c) a (d) 2a (e) None of the above. The correct answer is...
1 answer
D Question 5 4 pts A 2000 Kg car travelling East at 10 m/s collides with...
D Question 5 4 pts A 2000 Kg car travelling East at 10 m/s collides with a 1000 kg car travelling north at 15 m/s. If the cars get tangled, what is their common speed after the collision? O 8.3 m/s 2.5 m/s O 15 m/s O 10 m/s...
1 answer
Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,19...
Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,190,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years: Y...
1 answer
Rob works in an organization that promotes broad job ranges and depth to increase organizational flexibility...
Rob works in an organization that promotes broad job ranges and depth to increase organizational flexibility and the utilization of human capital. Which of the following organizational design models best fits this brief description? A. High P B. Organic C. Team D. Behavioral...
1 answer
Fimd answr using TI 84 M m,s milk chocolate are a popular chocolate candy with six different colors (30% brown, 20% yellow, 20% red, 10% orange, 10% green, 10% blue). A sample of 200 people recor...
fimd answr using TI 84 M m,s milk chocolate are a popular chocolate candy with six different colors (30% brown, 20% yellow, 20% red, 10% orange, 10% green, 10% blue). A sample of 200 people recorded the colors of m m's in the table below. Brown is 67 yellow is 39 red is 45 orange is 15 reen ...
1 answer
Raketan Repairs received $1,300 cash from a customer for repair services to be provided next month....
Raketan Repairs received $1,300 cash from a customer for repair services to be provided next month. Given the choices below, determine the general journal entry that Raketan Repairs will make to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned it...
1 answer
QUESTION 2 (40 MARKS) Figure Q2 show Binary to Gray code converter block diagram. Based on...
QUESTION 2 (40 MARKS) Figure Q2 show Binary to Gray code converter block diagram. Based on that figure, design: (a) Circuit using logic gates. Obtain the truth table and represent Yo, Y1, Y2 and Y3 in minimized SOP Boolean algebra term. Draw the circuit using logic gates (CO2:P03 - 20 Marks) (b) Cir...
1 answer
3. So you want to be an astronaut. There is a new "test" that all must...
3. So you want to be an astronaut. There is a new "test" that all must go through call the vertical circle of death (well at least that is what we will call it). On this "ride" you (m-76kg) are spun in a 18m diameter vertical circle once every 2.0s. a) what is your angular speed? b) ...
1 answer
Mass m2 = 4.75-kg is connected to mass m2 = 3.70-kg by a string that passes...
Mass m2 = 4.75-kg is connected to mass m2 = 3.70-kg by a string that passes through a massless and frictionless pulley. Mass my is connected to mass m2 = 3.00-kg by a string. T TI m2 m T2 m3 Find the tension in the strings. T = N T2 = N...
1 answer
MISTY WITHDRAWS 1000 FROM HER COVERDELL EDUCATION SAVINGS ACCOUNT FOR NONQUALIFIED EDUCATION EXPENSES. THE ACCOUNT VALUE...
MISTY WITHDRAWS 1000 FROM HER COVERDELL EDUCATION SAVINGS ACCOUNT FOR NONQUALIFIED EDUCATION EXPENSES. THE ACCOUNT VALUE BEFORE THE DISTRIBUTION WAS 5000. IN ADDITION SHE MADE 4 CONTRIBUTIONS OF 500 IN PRIOR YEARS. WHAT PORTION OF 1000 IS INCOME(INCLUDIBLE IN GROSS INCOME? 100 400 600 900...
1 answer
This information relates to Sheridan Company for the year 2022. Retained earnings, January 1, 2022 $76,300...
This information relates to Sheridan Company for the year 2022. Retained earnings, January 1, 2022 $76,300 Advertising expense 2,050 Dividends 6,840 Rent expense 11,800 Service revenue 66,120 Utilities expense 2,800 Salaries and wages expense 34,200 Prepare an income statement for the year ending De...
1 answer
3) (30 points) A 1.15-kilogram block of iron (s 0.444 J/g °C) at T--5 °C is...
3) (30 points) A 1.15-kilogram block of iron (s 0.444 J/g °C) at T--5 °C is submerged in 550.0 grams of water (s = 4.184 J/g?C) at T-85 °C, what is the final common temperature of the iron and water?...
1 answer
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected...
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfolio is 16%, and on the zero-beta portfolio it is 7%. What is the expected return on a portfolio with a beta of 0.9? (Do not round intermediate calculations. Round your answer...