Ultra Corporation is considering the replacement of a piece of equipment that it bought three years ago for $150,000. At the time of purchase, the equipment was expected to have a useful life of five years. Ultra, whose tax rate is 40%, uses straight-line depreciation.

Question 14 If Ultra is able to sell the equipment for $70,000, the net cash flows from the sale are _____.

10,000

60,000

66,000

56,000