Question
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% |
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