HOMEWORK #7E (AFTER-TAX CASH FLOW FROM
SELLING THE OLD ASSET)
Written: Jul 7, 2020
point
Genetic Insights Co. purchases an asset for $18,182. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $4,642.
Calculate accumulated depreciation over 6 years. Round the answer to
two decimals.
Answer:
18182*0.1429=2598.21
18182*0.2449=4452.77
18182*0.1749=3180.03
18182*0.1249=2270.93
18182*0.0893=1623.65
18182*0.0893=1623.65
TOTAL: 15749.25
15,749.25
1/1
Question 2
point
Genetic Insights Co. purchases an asset for $15,273. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $3,116.
Calculate book value of an asset. Round the answer to two decimals.
Answer:
15273*0.1429=2182.51
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:40:08 GMT -05:00
https://www.coursehero.com/file/65013832/HOMEWORK-7E-AFTER-TAX-CASH-FLOW-FROM-SELLING-THE-OLD-ASSETS-docx/
, 15273*0.2449=3740.36
15273*0.1749=2671.25
15273*0.1249=1907.6
15273*0.0893=1363.88
15273*0.0893=1363.88
TOTAL =13229.47
15273-13229.47=2043.53
2,043.53
Question
3 point
Genetic Insights Co. purchases an asset for $19,543. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $4,012.
Calculate gain or loss on disposal.
Gain should be entered as a positive number. Loss should be entered as
a negative number. Round the answer to two decimals.
Answer:
19543*0.1429=2792.69
19543*0.2449=4786.08
19543*0.1749=34188.07
19543*0.1249=2440.92
19543*0.0893=1745.19
19543*0.0893=1745.19
TOTAL: 16928.15
19543-16928.15=2614.85
4012-2614.85=1397.15
1,397.15
Question
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:40:08 GMT -05:00
https://www.coursehero.com/file/65013832/HOMEWORK-7E-AFTER-TAX-CASH-FLOW-FROM-SELLING-THE-OLD-ASSETS-docx/
SELLING THE OLD ASSET)
Written: Jul 7, 2020
point
Genetic Insights Co. purchases an asset for $18,182. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $4,642.
Calculate accumulated depreciation over 6 years. Round the answer to
two decimals.
Answer:
18182*0.1429=2598.21
18182*0.2449=4452.77
18182*0.1749=3180.03
18182*0.1249=2270.93
18182*0.0893=1623.65
18182*0.0893=1623.65
TOTAL: 15749.25
15,749.25
1/1
Question 2
point
Genetic Insights Co. purchases an asset for $15,273. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $3,116.
Calculate book value of an asset. Round the answer to two decimals.
Answer:
15273*0.1429=2182.51
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:40:08 GMT -05:00
https://www.coursehero.com/file/65013832/HOMEWORK-7E-AFTER-TAX-CASH-FLOW-FROM-SELLING-THE-OLD-ASSETS-docx/
, 15273*0.2449=3740.36
15273*0.1749=2671.25
15273*0.1249=1907.6
15273*0.0893=1363.88
15273*0.0893=1363.88
TOTAL =13229.47
15273-13229.47=2043.53
2,043.53
Question
3 point
Genetic Insights Co. purchases an asset for $19,543. This asset qualifies
as a seven-year recovery asset under MACRS. The seven-year fixed
depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%,
24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic
Insights has a tax rate of 30%. The asset is sold at the end of six years
for $4,012.
Calculate gain or loss on disposal.
Gain should be entered as a positive number. Loss should be entered as
a negative number. Round the answer to two decimals.
Answer:
19543*0.1429=2792.69
19543*0.2449=4786.08
19543*0.1749=34188.07
19543*0.1249=2440.92
19543*0.0893=1745.19
19543*0.0893=1745.19
TOTAL: 16928.15
19543-16928.15=2614.85
4012-2614.85=1397.15
1,397.15
Question
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 09:40:08 GMT -05:00
https://www.coursehero.com/file/65013832/HOMEWORK-7E-AFTER-TAX-CASH-FLOW-FROM-SELLING-THE-OLD-ASSETS-docx/
