A large wine maker would like to buy new stainless steel containers for aging its wine. It is planning to purchase a number of containers for a total of $280,000. They have 7 years of usable life and lose the same value each year. The wine maker will then sell them in 4 years for an estimated $90,000 to replace with brand new ones at that time. The wine maker falls into a 33% tax rate bracket. Calculate the after-tax salvage value at the time the containers will get sold. - First, what is the annual depreciation of the containers? - Second, what is the remaining book value of the steel containers at the time when they will be sold by the wine maker? - Finally, what is the after-tax salvage value of the steel containers? - This implies that this is a for the wine maker