An asset used in a 4-year project falls in the 5-year MACRS class ( MACRS Table
ID: 2621438 • Letter: A
Question
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,540,000 and will be sold for $4,120,000 at the end of the project.
If the tax rate is 34 percent, what is the aftertax salvage value of the asset?
rev: 09_18_2012
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $18,540,000 and will be sold for $4,120,000 at the end of the project.
Explanation / Answer
BV4 = $18,540,000