Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for

$87,000.

It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS,

, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a

35%

tax rate) if

a.the sales price was

$30,000?

b.the sales price was

$27,178.80?

c.the sales price was

$19,000?

MACRS Fixed Annual Expense Percentages by Recovery Class

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%
11				3.28%

a.If the sales price is $30,000, what is the after-tax cash flow?

(Round to the nearest cent.)

b.If the sales price is $27,178.80,what is the after-tax cash flow?

(Round to the nearest cent.)

c. If the sales price is $19,000, what is the after-tax cash flow?

(Round to the nearest cent.)