Question
Reversing Rapids Co. purchases an asset for $163,725. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1,
Reversing Rapids Co. purchases an asset for $163,725. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $11,658.
Calculate After-Tax Cash Flow at disposal.
Round the answer to two decimals.
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
13th edition
1259444953, 978-1259444951
