Author Question: Bill Sharpe, owner of Sharper Knives Inc., is closing his business at the end of the current fiscal ... (Read 50 times)

aabwk4 · **on:** Apr 25, 2021

Bill Sharpe, owner of Sharper Knives Inc., is closing his business at the end of the current fiscal year. His sole asset, the knife-sharpening machine, is four years old. A depreciation table for the asset is shown below. Bill has agreed to sell the machine at the end of the year for $100,000. What is the impact on taxes from the sale of the machine? (Assume that Sharper Knives claimed a regular depreciation expense in the calculation of income taxes.) The tax rate is 35%. Round your answers to the nearest dollar.

Depreciation Table for Knife Sharpener

Year	Basis	Rate	Depreciation Expense	Accumulated Depreciation
1	$250,000	14.29%	$35,725	$35,725
2	$250,000	24.49%	$61,225	$96,950
3	$250,000	17.49%	$43,725	$140,675
4	$250,000	12.49%	$31,225	$171,900
5	$250,000	8.93%	$22,325	$194,225

◦ $7,665 additional taxes owing to IRS
◦ $7,665 tax refund from IRS
◦ $25,165 additional taxes owing to IRS
◦ $25,165 tax refund from IRS
◦ $27,335 additional taxes owing to IRS

dantucker · **Reply #1 on:** Apr 25, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 32% of students answer this correctly