Hy point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your ans millions rounded to 1 decimal place.) Double decline Schedule Year 1 Year 2 Year Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 art of Year Book Value 24 11.4 2$ 9.1 24 7.3 $ 4.7 $ 5.8 24 3.7 $ 3.0 %24 2.2 $ 1. preciation 2$ 2.3 2$ 1.8 24 1.5 24 1.2 $ 0.7 $ 0.9 %24 0.7 %24 0.7 %24 < Shields at 35% Tc $ 0.8 2$ 0.5 0.6 24 2$ 0.4 $ 0.3 %24 0.3 $ 0.3 S 0.3 2$ (Tax Shields) at 10% 2$ 0.7 $ 0.5 2$ 0.4 $ 0.3 24 0.2 $ 0.1 $ 0.1 $ 0.1 "hat would be the present value of the tax shield if the government allowed Sudbury to write-off the factory ediately? (Enter your answer in millions rounded to 1 decimal place.) cent value of depreciation tax shields

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
icon
Related questions
Question
Saved
Help
Save & Exit
Submit
Check my work
switch at any point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your answers
in millions rounded to 1 decimal place.)
Double decline Schedule
Year 1
Year 2
Year
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year
Start of Year Book Value
11.4 $
9.1 $
%24
7.3 $
5.8
4.7 $
3.7
3.0
2.2 $
1.5 $
Depreciation
2.3
1.8 $
1.5 $
1.2 $
0.9 $
0.7
0.7
0.7 $
0.7 $
Tax Shields at 35% Tc
$0.8
0.6 $
0.5
0.4
0.3 $
0.3 $
%24
0.3 $
%24
0.3
0.3 $
PV (Tax Shields) at 10%
$ 0.7
0.5
0.4
0.3 $
0.2
0.1 $
0.1 $
0.1
0.1 $
c. What would be the present value of the tax shield if the government allowed Sudbury to write-off the factory
immediately? (Enter your answer in millions rounded to 1 decimal place.)
Percent value of depreciation tax shields
Next
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
%24
Transcribed Image Text:Saved Help Save & Exit Submit Check my work switch at any point to straight-line. Now what is the present value of the depreciation tax shields? (Enter your answers in millions rounded to 1 decimal place.) Double decline Schedule Year 1 Year 2 Year Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year Start of Year Book Value 11.4 $ 9.1 $ %24 7.3 $ 5.8 4.7 $ 3.7 3.0 2.2 $ 1.5 $ Depreciation 2.3 1.8 $ 1.5 $ 1.2 $ 0.9 $ 0.7 0.7 0.7 $ 0.7 $ Tax Shields at 35% Tc $0.8 0.6 $ 0.5 0.4 0.3 $ 0.3 $ %24 0.3 $ %24 0.3 0.3 $ PV (Tax Shields) at 10% $ 0.7 0.5 0.4 0.3 $ 0.2 0.1 $ 0.1 $ 0.1 0.1 $ c. What would be the present value of the tax shield if the government allowed Sudbury to write-off the factory immediately? (Enter your answer in millions rounded to 1 decimal place.) Percent value of depreciation tax shields Next %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning