1. An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $15,480,000 and will be sold for $3,440,000 at the end of the project.
Required:
If the tax rate is 30 percent, what is the aftertax salvage value of the asset?
3,210,483
2,408,000
3,669,517
3,371,007
3,049,959
2. Kara took a loan of 50,000 for 3 years with end of the month payments. The principal and the interest in the 28th payment are the same. Find the principal repaid in the 14th payment.