Question
Crafter's Supply purchased fixed assets 3 years ago at a cost of $50,000. It no longer needs these assets, so it is going to sell
Crafter's Supply purchased fixed assets 3 years ago at a cost of $50,000. It no longer needs these assets, so it is going to sell them today for $28,000. The assets are classified as 5-year property for MACRS. What is the after-tax cash flow from this sale if the firm's tax rate is 32 percent? Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132)
| MACRS 5-year property | |
| Year | Rate |
| 1 | 20.00% |
| 2 | 32.00% |
| 3 | 19.20% |
| 4 | 11.52% |
| 5 | 11.52% |
| 6 | 5.76% |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
