Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $21 million, of which 80% has been depreciated. The used equipment can be sold today for $6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $21 million, of which 80% has been
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Every item that a business will be recording as declining on its books over time can have an estimated salvage value assessed. The salvage value is significant because it will serve as the asset's carrying value on a company's records after depreciation has been fully expended. It is predicated on the value a business anticipates obtaining from the asset's sale when its useful life is up. Sometimes, salvage value is just the price the business thinks it can get for parts by selling a depreciated, non-operational asset.
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