Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crafter's Supply purchased some fixed assets 3 years ago at a cost of $48,000. It no longer needs these assets so it is going to

Crafter's Supply purchased some fixed assets 3 years ago at a cost of $48,000. It no longer needs these assets so it is going to sell them today for $25,000. The assets are classified as 5-year property for MACRS. What is the after-tax cash flow from this sale if the firm's tax rate is 31 percent? Do not include the dollar sign ($). 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%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Real Estate Finance

Authors: Edward Glickman

1st Edition

0123786266, 9780123786265

More Books

Students also viewed these Finance questions

Question

=+1. What is a stakeholder? Define the term in your own words.

Answered: 1 week ago