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Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% A bakery invests $36,000
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
MACRS Depreciation Rate | 20.00% | 32.00% | 19.20% | 11.52% | 11.52% | 5.76% |
A bakery invests $36,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $20,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 20%?
A.$9,632
B.$1,926
C.$10,368
D.$18,074
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