a. What is the book value of the equipment?

The book value of the equipment after the third year is $_____. (Round to the nearest dollar.)

b. If Jones sells the equipment today for $176,000 and its tax rate is 25%, what is the after-tax cash flow from selling it?

The total after-tax proceeds from the sale will be $________(Round to the nearest dollar.)

The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $296,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $176,000 and its tax rate is 25%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. WNL