Tax effects of asset sale Three years ago, Girston Gravel Pit purchased a material conveyor system. The company has decided to sell the system and acquire more advanced technology. Data relating to the existing system follow. Current fair value Original cost Current book value for tax purposes $44,400 118,800 21,600 Current book value for financial accounting purposes 42,000 30% Corporate tax rate a. How much depreciation has been taken on the conveyor system for (1) tax and (2) financial accounting purposes? (1) Tax depreciation $ 0 (2) Financial accounting depreciation $ 0 b. What will be the after-tax cash flow from the sale of this asset? $ 0 c. What will be the after-tax cash flow from the sale of the asset if its fair value is $10,800 rather than $44,400? $ 0 Check