Henredon purchased a high precision programmable router for shaping furniture components for $85000. It is expected to last 12 years and have a salvage value of $39000. It is considered a MACRS 7 year property. It will produce $25000 in net revenue each year during its life. Corporate income taxes are 0.28 and the after-tax MARR is 0.01. How much in taxes will they have to pay in year 3 on the income from this machine? Your Answer: Answer

Henredon purchased a high precision programmable router for shaping furniture components for $85000. It is expected to last 12 years and have a salvage value of $39000. It is considered a MACRS 7 year property. It will produce $25000 in net revenue each year during its life. Corporate income taxes are 0.28 and the after-tax MARR is 0.01. How much in taxes will they have to pay in year 3 on the income from this machine? Your Answer: Answer

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 18E

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