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please show all the work Consider an asset that costs $878,400 and is depreciated straight-line to zero over its nine-year tax life. The asset is
please show all the work
Consider an asset that costs $878,400 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a six-year project; at the end of the project, the asset can be sold for $135,100. (Do not round intermediate calculations.) | |||||||
Required: | |||||||
What is the book value of the equipment in 6 years? | |||||||
Book value | |||||||
If the relevant tax rate is 30%, what is the aftertax cash flow from the sale of this asset? | |||||||
Aftertax salvage value |
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