13. Your firm purchased an asset 3 years ago at the start of the year. The cost was $55,000, e expected salvage value is $5,000 and the expected life is 10 years. You have used the straight-line depreciation method. You sell the asset for $35,000 at the end of the third th year. Ifyou are in the 35% tax bracket your after-tax cash inflow will be a) $22,750. b) $35,000. c) $36,750. 14. Storage costs: a) can never be included in inventory b) are typically included in inventory costs c) can be included in inventory when storage is required as part of the production process 15. Other things being equal, during times of falling prices, a firm will generally pay less in taxes when using a) FIFO b) LIFO c) Weighted average