Pharoah Corporation just purchased computing equipment for $18,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $12,000, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent? (Round answer to 2 decimal places, e.g. 15.25.) EXHIBIT 11.7 MACRS Depreciation Schedules by Allowable Recovery Period The MACRS schedule lists the tax depreciation rates that firms use for assets placed into service after the Tax Reform Act of 1986 went into effect. The table indicates the percentage of the cost of the asset that can be depreciated in each year during the period that it is being used. Year 1 is the year in which the asset is first placed into service. Year 3-Year 5.Year 7-Year 10-Year 15-Year 20-Year 33.33% 20.00% 14.29% 10.00% 5.00% 3.75% 44.45 32.00 24.49 18.00 9.50 7.22 14.81 19.20 17.49 14.40 6.68 7.41 11.52 12.49 11.52 6.18 11.52 8.93 9.22 5.76 8.92 7.37 8.93 6.55 4.46 8.55 23 4.46 4.46 2.24 100.00% 21 Total 100.00% 100.00% 100.00% 100,00% 100.00% After-tax proceeds $