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Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $94,000. 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 $94,000. 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 40% tax rate) if a. the sales price was $36,000? b. the sales price was $29,365.60? c. the sales price was $20,000? a. If the sales price is $36,000, what is the after-tax cash flow? $ (Round to the nearest cent.) b. If the sales price is $29,365.60, what is the after-tax cash flow? $ (Round to the nearest cent.) c. If the sales price is $20,000, what is the after-tax cash flow? $ (Round to the nearest cent.)
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