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 $305,000.

a. What is the book value of the equipment?

b. If Jones sells the equipment today for $175,000 and its tax rate is 21%, what is the after-tax cash flow from selling it?

Note: Assume that the equipment is put into use in year 1.

a. What is the book value of the equipment?

The book value of the equipment after the third year is $e(Round to the nearest dollar.)

here is an example of the sulotion

View an example | 2 parts remaining 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 $293,000. a. What is the book value of the equipment? b. If Jones sells the equipment today for $171,000 and its tax rate is 21%, what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1. a. What is the book value of the equipment? Here is the MACRS five-year schedule, along with the depreciation and book value per year: Therefore, the book value of the equipment after the third year is $84,384. View an example | 1 part remaining 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 $293,000. What is the book value of the equipment? . If Jones sells the equipment today for $171,000 and its tax rate is 21%, what is the after-tax cash flow from selling it? Vote: Assume that the equipment is put into use in year 1. What is the book value of the equipment? Here is the MACRS five-year schedule, along with the depreciation and book value per year: Therefore, the book value of the equipment after the third year is $84,384. If Jones sells the equipment today for $171,000 and its tax rate is 21%, what is the after-tax cash flow from selling it? The profits on the sale would be found using the following formula: Profit from Sale = Sale Price - Book Value Therefore, Profit from Sale =$171,000$84,384=$86,616 f Jones sells the equipment today for $171,000, then the profit on the sale is $86,616