Question
Crafter's Supply purchased some fixed assets 3 years ago at a cost of $51,000. 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 $51,000. It no longer needs these assets so it is going to sell them today for $21,000. The assets are classified as 5-year property for MACRS. What is the after-tax cash flow from this sale if the firm's tax rate is 35 percent? Do not include the dollar sign ($). 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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Investment Management
Authors: Stephen Lofthouse
2nd Edition
047149237X, 9780471492375
