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Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. It is classified in the property class category of a single-purpose
Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $93,000. 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, B3, was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a 40% tax rate) if a. the sales price was $35,000? b. the sales price was $29,053.20? c. the sales price was $21,000? i X Data Table a. If the sales price is $35,000, what is the after-tax cash flow? $ (Round to the nearest cent.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Year 7-Year 10-Year 1 14.29% 2 3-Year 33.33% 44.45% 14.81% 7.41% 3 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 4 5 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 6 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 7 8 9 10 11
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