A

fiveminusyear

MACRS asset that cost $50,000 was sold at the end of its useful life for $20,000. The book value of the asset at the time of sale was $0. The asset had no expected terminal value. The tax rate is 20%. What is the net

afterminustax

cash effect from the sale of the asset?

A.

$24,000 cash outflow

B.

$24,000 cash inflow

C.

$16,000 cash inflow

D.

$16,000 cash outflow