Fax effects of asset sale) Three years ago, Joe Dirt Co. purchased a material conveyor system. The company has decided to sell the system and acquire more advanced technology. Data relating to this system follow:

a. How much depreciation has been taken on the conveyor system for (1) tax and (2) financial accounting purposes?

b. What will be the after-tax cash flow from the sale of this asset?
C. What will be the after-tax cash flow from the sale of the asset if its mar¬ ket value is $9,000 rather than $37,000? LO.1 

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Current market value $37,000 Original cost 95,000 Current book value for tax purposes 18,000 Current book value for financial accounting purposes 35,000 Corporate tax rate 40%