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A distribution center purchased an equipment for $100,000 and has depreciated the equipment using the MACRS depreciation schedule with as a 7-year property. The

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A distribution center purchased an equipment for $100,000 and has depreciated the equipment using the MACRS depreciation schedule with as a 7-year property. The operating income in year 2 was $200,000 and the expenses were $87,000. If the company is in the 40% income tax bracket, determine the after-tax cash flow in year 2 The tax in year 2 is equal to O $40,00 O $35,404 O $24,490 None of these

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