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?

Answers: Correct answer is D 1,040,000 show me steps to solve after tax net salvage value !

a.

$260,000

b.

$900,000

c.

$3,040,000

d.

$1,040,000

e.

$1,560,000