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Power Manufacturing has equipment that it purchased 6 years ago for $1,900,000. The equipment was used for a project that was intended to last for
Power Manufacturing has equipment that it purchased 6 years ago for $1,900,000. The equipment was used for a project that was intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $270,000 today. The company's tax rate is 21 percent. What is the aftertax salvage value of the equipment?
Multiple Choice
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$313,050
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$364,500
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$305,875
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$270,000
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$198,250
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