Question
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $ 302,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $ 179,000 and its tax rate is 35 %, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1.
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The VAR Implementation Handbook
Authors: Greg Gregoriou
1st Edition
007161513X, 978-0071615136
