Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost recovery. Brock Florist Company bought a new delivery truck for $29 comma 000. It was classified as a light-duty truck. The company sold its

Cost recovery. Brock Florist Company bought a new delivery truck for $29 comma 000. It was classified as a light-duty truck. The company sold its delivery truck after three years of service. If a five-year life and MACRS, LOADING..., was used for the depreciation schedule, what is the after-tax cash flow from the sale of the truck (use a 30% tax rate) if a.the sales price was $18 comma 000? b.the sales price was $10 comma 000? c.the sales price was $5 comma 000? a. If the sales price was $18 comma 000, what would be the after-tax cash flow?

Year

3-Year

5-Year

7-Year

10-Year

1

33.33%

20.00%

14.29%

10.00%

2

44.45%

32.00%

24.49%

18.00%

3

14.81%

19.20%

17.49%

14.40%

4

7.41%

11.52%

12.49%

11.52%

5

11.52%

8.93%

9.22%

6

5.76%

8.93%

7.37%

7

8.93%

6.55%

8

4.45%

6.55%

9

6.55%

10

6.55%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

De Gruyter Handbook Of Personal Finance

Authors: Grable, John E., Chatterjee, Swarn

1st Edition

3110727498, 978-3110727494

More Books

Students also viewed these Finance questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

Design a health and safety policy.

Answered: 1 week ago