Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. An asset costs $730,000 and can be depreciated at 20% per year (class 8) over its eight year life. The asset is to be

image text in transcribed
6. An asset costs $730,000 and can be depreciated at 20% per year (class 8) over its eight year life. The asset is to be used in a five year project and can be sold for $192,000 at the end of the project. If the relevant tax rate is 40%, what is the after tax cash flow from the sale of this asset? Assume that there wont be any assets left in the class in six years. a) $453,998.00 b) $222,842.88 c) $234,887.00 d) $587,908.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions

Question

Write short notes on Interviews.

Answered: 1 week ago