Solve this accounting issue with correct calculation A business purchases depreciable equipment for 191and sells it a few years later for 166. At the time of thesale, accumulated depreciation totals 106. If thecompany's tax rate is 39, what is the total after-tax cashflow that will result from selling this asset?

Step 1: Define Asset DisposalAsset disposal is when the company decides to sell its depreciable…

Answered: A business purchases depreciable…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 16DQ

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A business purchases depreciable equipment for 191 and sells it a few years later for 166. At the time of the sale, accumulated depreciation totals 106. If the company's tax rate is 39, what is the total after-tax cash flow that will result from selling this asset?