Hunter's Lodge purchased $578,000 of equipment four years ago.The equipment is seven-year MACRS property.The firm is selling this equipment today for $199,500.What is the aftertax cash flow from this sale if the tax rate is 35 percent? The MACRS allowance percentages are as follows,commencing with year 1:
14) 29,24.49,17.49,12.49,8.93,8.92,8.93,and 4.46 percent.
A) $153,869.81
B) $158,114.81
C) $198,410.18
D) $209,740.81
E) $216,610.81
Correct Answer:
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