Question 23

A company is selling an equipment after three years for $16,320. The equipment was originally purchased for $77,317. The tax rate is 19%. The equipment is classified as a 7-year property. What is the after-tax salvage value? The MACRS allowance percentages are as follows, starting with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent.