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8 of 9 (6 complet HW Score: 55.9%, 5.03 of 9 pts Score: 0 of...

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8 of 9 (6 complet HW Score: 55.9%, 5.03 of 9 pts Score: 0 of 1 pt Problem 10.LO2.27 (similar to) Question Help Tinney & Smyth Inc. is considering the purchase of a new batch polymer-bonding machine for producing Crazy Rubber, a children's toy that is soft, pliable but also bouncy. The machine will increase EBITDA by $290,000 per year for the next two years. Assume that operating cash flows occur at the end of each year. The machine's purchase price is $325,000 and the salvage value at the end of two years is $55,250. The machine is classified as 3-year property. To run the Crazy Rubber production line the company will need to purchase an inventory of polydimethylsiloxane and boric acid for a total cost of $13,000. The MACRS depreciation rates for the first two years are 33.33% and 44.45%. The accumulated depreciation at the end of the two years is $252,786. The tax rate is 35%. What is the tax on the sale of the machine when it is sold at the end of year 2? The book value of the machine is $ . (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. Clear All Check Answer 1 part 1 remaining

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