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17 Year0 Year 1 Year 2 Year 3 Year 4 Year 5 MAQRS Depreciation Rate 20.00% 3200% 19.20% 11.52% 11.52% 5.76% A bakery invests $40,000
17 Year0 Year 1 Year 2 Year 3 Year 4 Year 5 MAQRS Depreciation Rate 20.00% 3200% 19.20% 11.52% 11.52% 5.76% A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%? A) $11,520 B) $9480 C) 53792 D) $17,208
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