Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Winslow Motors purchased $225,000 of MACRS 5-year property. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52percent, 11.52 percent, and 5.76 percent for Years
Winslow Motors purchased $225,000 of MACRS 5-year property. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52percent, 11.52 percent, and 5.76 percent for Years 1 to 6,respectively. The tax rate is 34 percent. If the firm sells theasset after five years for $10,000, what will be the aftertax cashflow from the sale?
A. $8,993.60
B. $8,880.20
C. $11,006.40
D. $7,770.40
E. $12,892.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started