Five-year MACRS Table: Year Depreciation Percentage

1 20.00%

2 32.00

3 19.20

4 11.52

5 11.52

6 5.76

After their pizza oven was stolen, the owners of The Rose bought a new oven for $1,950,000. The new pizza oven is expected to last for 4 years and can be sold for $279,000 at the end of its life. What is the after-tax salvage value of the pizza oven if The Roses tax rate is 40%?

Multiple Choice $212,328 $302,184 $279,000 $167,400 $255,816