In December of 20x4, Atlas Chemical Corporation sold a forklift for $9,255. The machine was purchased in

Question:

In December of 20x4, Atlas Chemical sold a forklift for $9,255. The machine was purchased in 20x1 for $50,000. Since then $38,845 in depreciation has been recorded on the forklift.
Required:
1. What was the forklift's book value at the time of sale?
2. Compute the gain or loss on the sale.
3. Determine the after-tax cash flow at the time the forklift was sold. The firm's tax rate is 45 percent?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...