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Golden overseas shipping purchased a new truck two years ago for $300,000. The company uses MACRS depreciation for accounting purposes. The truck is classified as
Golden overseas shipping purchased a new truck two years ago for $300,000. The company uses MACRS depreciation for accounting purposes. The truck is classified as 5- year property, which has depreciation allowances of 20%, 32%, and 19.2% for the first three years, respectively. The company is in the 35% marginal tax bracket. Today the company received an offer of $160,000 for the truck. What will be the net cash flow from the sale if the company decides to sell the truck today? a. $126,500 b. $130,000 c. $145,000 d. $150,890 e. $154,400
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