Question
Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets are classified as 5-year property for
Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets are classified as 5-year property for MACRS. The MACRS table values are .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the net cash flow from the salvage value if the tax rate is 35 percent?
| a. | $18,020 |
| b. | $19,098 |
| c. | $18,720 |
| d. | $18,902 |
| e. | $19,000 |
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Options Futures And Other Derivatives
Authors: John C. Hull
4th Edition
0130224448, 9780130224446
