help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced

Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced

Finance

Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $17 million, of which 80% has been depreciated. The used equipment can be sold today for $5.1 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

$ ________________

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Statement showing computation:

After tax salvage value= Salvage value- Tax*(salvage value-book value)

Salvage value= $5.1 million

Book value= 17*(1-0.80)= 3.4 million

Tax= 40%

After tax salvage value= 5.1-0.40*(5.1-3.4)

After tax salvage value= 5.1-0.68= 4.42 million

After tax salvage value= $4420000

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)