please include all work and have answer clearly written.Not use excel 13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-yearMACRS approach. However, after 2 years your company sold the machinery for $50,000.Compute the after-tax gains or losses your company makes on this sale. Assume a tax rate of21%.

Depreciation is defined as any fall in the value of an asset due to its usage and time spent on it.…

Answered: 13) Your company bought a piece of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 7P

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13) Your company bought a piece of machinery for $80,000, and depreciated it using a 5-year MACRS approach. However, after 2 years your company sold the machinery for $50,000. Compute the after-tax gains or losses your company makes on this sale. Assume a tax rate of 21%.