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Nashville Wedding Party Downtown Traffic Cloggers purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is selling this equipment
Nashville Wedding Party Downtown Traffic Cloggers purchased $525,000 of equipment four years ago. The equipment is seven-year MACRS property. The firm is selling this equipment today for $150,000. What is the aftertax cash flow from this sale if the tax rate is 27 percent? The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent. Multiple Choice $ 152,941.10 $147,057.90 $168,825.81 $166,712.33 $143,096.78
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