Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL...
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Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 2014 for $280,000. The excavator is classified as a 10-year property. (see the MACRS depreciation rates on PolyLearn, or google it.) What would the book value of that excavator be at the end of 2015. [To be clear, this would be two years of depreciation.] Round to the nearest dollar. How much tax would be due on the sale of the excavator described above if the tax rate was 35% and the equipment was resold for $225,000? Round to the nearest dollar.
Assume that today is December 31, 2015. Mike Mulligan Excavation Inc. has one Caterpillar 345DL Hydraulic Excavator. It was purchased at the beginning of 2014 for $280,000. The excavator is classified as a 10-year property. (see the MACRS depreciation rates on PolyLearn, or google it.)
What would the book value of that excavator be at the end of 2015. [To be clear, this would be two years of depreciation.]
Round to the nearest dollar.
How much tax would be due on the sale of the excavator described above if the tax rate was 35% and the equipment was resold for $225,000?
Round to the nearest dollar.
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