Question
Lumber Yard Industries purchased some fixed assets 2 years ago for $530,000. The company plans on selling them today for $105,000. The assets are classified
Lumber Yard Industries purchased some fixed assets 2 years ago for $530,000. The company plans on selling them today for $105,000. The assets are classified as 3-year property for MACRS. What is the after-tax salvage value from this sale if the firms tax rate is 21 percent?
| Year | Depreciation Rate |
| 1 | 33.33% |
| 2 | 44.45% |
| 3 | 14.81% |
| 4 | 7.41% |
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
