Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is the after-tax cash flow from this sale if the tax rate is 35%? The applicable MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. A. $19,776.80 B. $18,846.67 D. $20,408.20 E. $25,153.33 C. $24,223.20
Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is the after-tax cash flow from this sale if the tax rate is 35%? The applicable MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. A. $19,776.80 B. $18,846.67 D. $20,408.20 E. $25,153.33 C. $24,223.20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment
for $22,000. What is the after-tax cash flow from this sale if the tax rate is 35%? The applicable MACRS
allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76
percent.
A. $19,776.80
B. $18,846.67
D. $20,408.20
E. $25,153.33
C. $24,223.20
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