Question
Alpha Car Rental purchased 5 cars for a total of $100,000 four year ago. Now it is replacing the cars with newer vehicles. The company
Alpha Car Rental purchased 5 cars for a total of $100,000 four year ago. Now it is replacing the cars with newer vehicles. The company has depreciated the cars under the 5-year MACRS category over these four years, and they have a current book value of $17,280. Alpha sold these cars for a total of $15,000 at the end of year 4. Assume a tax rate of 40%. What is the total cash inflow from the sale of these vehicles?
| a. | $15,912 | |
| b. | $17,280 | |
| c. | $2,280 | |
| d. | $15,000 |
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Advanced Financial Accounting
Authors: Thomas H. Beechy
5th Edition
0131236997, 9780131236998
