Author Question: Waterford Industries is considering the purchase of a new machine. It will replace an existing but ... (Read 280 times)

Destiiny22 · **on:** Jul 10, 2018

Waterford Industries is considering the purchase of a new machine. It will replace an existing but
obsolete machine that will be sold for 50,000.

The existing machine is 8 years old, cost 200,000,
had a 10-year useful life, and is being depreciated to zero using the straight-line method.
Waterford's income tax rate is 35. What is the after-tax salvage value of the old machine?
A) 53,500 B) 46,500 C) 50,000 D) 42,000

Question 2

Total debt must always be equal to the sum of temporary, permanent, and spontaneous sources of
financing.

Indicate whether the statement is true or false