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Investment Cashflows Problem Blossom Corporation just purchased computing equipment for $17,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment
Investment Cashflows Problem
Blossom Corporation just purchased computing equipment for $17,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $14,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent?
Here is what I did so far Please double check my work so far.
End of Book Value of Equipment Sold is $3456
(14,000-3456)*.35 = 3690.4
14,000-3690.4 = 10309.6
After Tax-Proceeds = $10309.6
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