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a firm has just completed a 5-year project and sold the equipment for $3,000. The equipment was purchased 5 years ago for $12,000. The firm
a firm has just completed a 5-year project and sold the equipment for $3,000. The equipment was purchased 5 years ago for $12,000. The firm depreciated the equipment using the accelerated depreciation (MACRS) schedule given below:
Years | MACRS |
1 | 20.00% |
2 | 32.00% |
3 | 19.20% |
4 | 11.52% |
5 | 11.52% |
6 | 5.76% |
What are the after tax proceeds from the sale of the equipment, assuming the tax rate is 25.00%?
A) $2,860
B) $2,489
C) $2,475
D) $2,648
E) $2,542
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