MACRS a Machine Is Purchased for $575,000 and Is Used

question 14

Multiple Choice

MACRS
A machine is purchased for $575,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%?

• A) $42,608
• B) $15,916
• C) $32,392
• D) $63,663

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Definitions:

Pheromones

Chemical substances released by animals (including humans) that affect the behavior or physiology of others of the same species, often involved in attraction.

Chemical Signals

Molecules released by organisms that influence the behavior or physiology of others, fundamental in processes such as communication and mating.

Mourning

The process of expressing grief and sorrow for someone who has died, often involving rituals and practices specific to a culture or individual.

Lost Incentive

implies a decrease or loss in motivation due to the removal or absence of rewards or goals that once provided motivation.