Question21 A machine was purchased for $30,000 and is being depreciated using straight-line depreciation to zero over 5 years. After 3 years, the firm sells the machine for $90,000.The firm’s tax rate is 30%.What is the machine’s after-tax salvage value?Select one alternative: $66,600 $90,000 $81,000 $63,000 ResetMaximum marks: 4 Flag question undefined单项选择题
A
$66,600
B
$90,000
C
$81,000
D
$63,000

Question

Question21 A machine was purchased for $30,000 and is being depreciated using straight-line depreciation to zero over 5 years. After 3 years, the firm sells the machine for $90,000.The firm’s tax rate is 30%.What is the machine’s after-tax salvage value?Select one alternative: $66,600 $90,000 $81,000 $63,000 ResetMaximum marks: 4 Flag question undefined单项选择题

A

$66,600

B

$90,000

C

$81,000

D

$63,000

BlackTom AI · Accepted Answer

Annual straight-line depreciation = cost / life = $30,000 / 5 = $6,000 per year.

1. Relevant knowledge points and concepts
- Straight-line depreciation spreads the asset cost evenly over its useful life.
- Book value after t years = cost − accumulated depreciation.
- When an asset is sold, taxable gain = sale price − book value (if positive).
- Tax is applied only to the gain, not to the full sale proceeds. After-tax salvage = sale proceeds − tax on gain.

2. Step-by-step reasoning
- Compute annual depreciation: $30,000 ÷ 5 = $6,000.
- Accumulated depreciation after 3 years = $6,000 × 3 = $18,000.
- Book value at time of sale = original cost − accumulated depreciation = $30,000 − $18,000 = $12,000.
- Realized gain on sale = sale price − book value = $90,000 − $12,000 = $78,000.
- Tax on gain (30%) = 0.30 × $78,000 = $23,400.
- After-tax salvage value = sale price − tax = $90,000 − $23,400 = $66,600.

3. Intermediate calculations shown
- Annual depreciation = 30,000/5 = 6,000
- Accum. depreciation (3 yrs) = 6,000×3 = 18,000
- Book value = 30,000−18,000 = 12,000
- Gain = 90,000−12,000 = 78,000
- Tax = 78,000×0.30 = 23,400
- After-tax proceeds = 90,000−23,400 = 66,600

4. Why this answer is correct
Tax is assessed only on the gain relative to book value, not on the entire sale proceeds. Subtracting the tax on the gain from the gross sale price yields the correct after-tax salvage amount.

5. Why the other options are incorrect
- $90,000: ignores tax entirely (pretax proceeds).
- $81,000: no consistent depreciation/tax calculation leads to this number; it does not account for tax applied only to the gain.
- $63,000: equals $90,000 − 30%×$90,000 (tax on full sales price), which incorrectly taxes the entire proceeds instead of only the gain.

6. Conclusion
The correct after-tax salvage value is $66,600, which matches the provided answer.

类似问题

Conceptually, depreciation represents the economic value of an asset used up in a period. Which of the following statements is correct?

Which of the following trees corresponds to a potential parse of the ambiguous sentence below, with correct syntactic categories? Some diagnostics are provided.

Which of the following sentences contain two non-finite verbs? Select all that apply.

Analyze the following sentence: The sentence contains [ Select ] 8 6 5 7 3 4 functional words, [ Select ] 2 3 1 4 5 count nouns, [ Select ] 4 5 2 1 3 mass nouns, and [ Select ] 1 5 2 3 4 adjectives.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单