Chapter 10, Question 1 Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $87,000. It is classified in the property class category of a single-purposeagricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, E, was used for thedepreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 40% tax rate) ifa. the sales price was $30,000?b. the sales price was $27,178.80?c. the sales price was $22,000?i Data Tablea. If the sales price is $30,000, what is the after-tax cash flow?(Round to the nearest cent.)MACRS Fixed Annual Expense Percentages by Recovery ClassClick on this icon e to download the data from this tableYear3-Year5-Year7-Year10-Year133.33%20.00%14.29%10.00%244.45%32.00%24.49%18.00%14.81%19.20%17.49%14.40%47.41%11.52%12.49%11.52%11.52%8.93%9.22%6.5.76%8.93%7.37%78.93%6.55%8.4.45%6.55%6.55%106.55%113.28%Enter vour apswer in the answer box and then click Check Answ

Depreciation is the fall in the value of an asset due to its usage and time. It is a non-cash…

Answered: a. If the sales price is $30,000, what…

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a. If the sales price is $30,000, what is the after-tax cash flow?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7PB: Tree Lovers Inc. purchased 2,500 acres of woodland in which it intends to harvest the complete...

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Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.
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