Sound & Fury Entertainment (SFE) purchased an asset for $1,500,000. The asset is classified as a 7-year asset for purposes of depreciation using MACRS. SFE sold the asset after four years. Using a 15% tax rate, what is the after-tax salvage value of the asset if SFE sells the asset for $350,000?

Answers:

a. $367,790

b. $332,210

c. $325,603

d. $336,380

e. $977,500