Zeige Inc

Finance Dec 17, 2021

Zeige Inc. acquired an exploration plant worth $8.5 million. The plant will be used in a four-year exploration joint venture project. Considering the usage life of the plant, it falls in 5 - year MACRS class for tax purposes. The plant is expected to be sold for $1.9 million at the end of the project. If the tax rate is 35%, compute the after-tax salvage value of the machine. (6 marks)