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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 3 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Four years ago Sierra Instruments of Monterey, California spent $200,000 for equipment to manufacture standard gas flow calibrators. The equipment was depreciated by MACRS using a 3-year recovery period. The gross income for year 4 was $100,000, with operating expenses of $50,000. Use an effective tax rate of 40% to determine the
CFAT in year 4 if the asset was ( a ) discarded with no salvage value in year 4 and ( b ) sold for $20,000 at the end of year 4 (neglect any taxes that may be incurred on the sale of the equipment). The MACRS depreciation rate for year 4 is 7.41%.
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