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Homework answers / question archive / Eletropaulo Ltd purchased a pizza doe-making machine for $ $280,000 280,000 just on 3 3 years ago

Eletropaulo Ltd purchased a pizza doe-making machine for $ $280,000 280,000 just on 3 3 years ago

Finance

Eletropaulo Ltd purchased a pizza doe-making machine for $

$280,000

280,000 just on 3

3 years ago. The machine has a 7

7-year useful life and will be depreciated on a straight-line basis to 10

10% of the original cost. The manager intends to replace the current machine with the new one at the cost of $

$295,000

295,000.

If the current machine can be sold right now for $

$106,000

106,000, what is the after-tax salvage of the sale given the tax rate of 30.0

30.0%?

Option 1

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3.94 USD

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