The manager at the Alexandria Environmental Services reported $14,250 as the current disposal value of an old machine.The loss on the disposal of the old machine is $50,000.The tax rate is 42%.The managerial accountant provided the following information:
Alexandria Environmental Service

Required
Compute the tax savings on the loss and the after tax inflow from current disposal of the old machine.Show all work.

Question

The manager at the Alexandria Environmental Services reported $14,250 as the current disposal value of an old machine.The loss on the disposal of the old machine is $50,000.The tax rate is 42%.The managerial accountant provided the following information:
Alexandria Environmental Service
  
Required
Compute the tax savings on the loss and the after tax inflow from current disposal of the old machine.Show all work.

Quizplus · Accepted Answer

The Answer of The manager at the Alexandria Environmental Services reported $14,250 as the current disposal value of an old machine.The loss on the disposal of the old machine is $50,000.The tax rate is 42%.The managerial accountant provided the following information:
Alexandria Environmental Service
  
Required
Compute the tax savings on the loss and the after tax inflow from current disposal of the old machine.Show all work.

The Manager at the Alexandria Environmental Services Reported $14,250 as the Current