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Problem #1: (Winter 2013) Salvage Value = $43,000 tax basis $30,000 tax rate = 30%

Presented and discussed in class on Feb. 12, 2013: http://10.101.116.223/F435/W13/F435All4Feb12.html

Problem #2: (Winter 2013)

Salvage value = $28,000 tax basis = $19,000 tax rate = 30%.

Presented and discussed in class on Feb. 12, 2013: http://10.101.116.223/F435/W13/F435All4Feb12.html

Problem 3: (Winter 2013)

Salvage Value = $84,000 tax basis $92,000 tax rate = 30%

Presented and discussed in class on Feb. 12, 2013: http://10.101.116.223/F435/W13/F435All4Feb12.html

Problem #4: (Spring 2014)
Machine costs $50,000 now
Depreciation over a 5-year MACRS life
Three years from now, we will sell this machine for $11,000.
What will be the ATSV of the machine in three years?
34%

Presented and discussed in May 7, 2014, class: http://10.101.116.223/F435/S14/F435All4May7.html

Problem #5: (From Quiz #3-B, Fall 2014)

initial cost = $10,417,000.00 expected salvage value in 10 years= $3,260,000 marginal tax rate = 34%
15-year MACRS depreciation

Problem #6: (From class on Nov. 4, 2014, when preparing for HW#5)

Old Machine: marginal tax rate = 34% if sold now, salvage value = $4,000 net book value or tax basis = $2,100 if sold in 4 years, salvage value = $2,500 If kept, then depreciation will be:

time depr(old)
1 $300
2 $200
3 $150
4 $100
Presented and discussed in Nov. 4, 2014, class:

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