Pringle Plastics recently sold a forklift for $12,500. The firm, which pays taxes on income at the

Question:

Pringle Plastics recently sold a forklift for $12,500. The firm, which pays taxes on income at the rate of 45%, had purchased the forklift for $50,000. The firm’s books show accumulated depreciation of $38,700.

Required:
What is the after-tax cash flow due to the sale of the forklift?