Question
Lincoln Manufacturing is now in the final year of a project. The equipment originally cost $25 million, of which 100 percent has been depreciated. Lincoln
Lincoln Manufacturing is now in the final year of a project. The equipment originally cost $25 million, of which 100 percent has been depreciated. Lincoln can sell the used equipment today for $3.7 million, and its tax rate is 35 percent. What is the equipments after-tax net salvage value?
| a. | $11,155,000 | |
| b. | $1,295,000 | |
| c. | $4,995,000 | |
| d. | $2,405,000 | |
| e. | $3,090,000 |
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Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
