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Kennedy Airlines is now in the final year of a project. The equipment originally cost $10 million, of which 100 percent has been depreciated. Kennedy
Kennedy Airlines is now in the final year of a project. The equipment originally cost $10 million, of which 100 percent has been depreciated. Kennedy can sell the used equipment today for $1.3 million, and its tax rate is 20 percent. What is the equipments after-tax net salvage value?
| a. | $260,000 | |
| b. | $900,000 | |
| c. | $1,560,000 | |
| d. | $1,040,000 | |
| e. | $3,040,000 |
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