Phil's Dinor purchased some new equipment two years ago for $89,500.Today,it is selling this equipment for $67,000.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:
20)00,32.00,19.20,11.52,11.52,and 5.76 percent.

Question

Quizplus · Accepted Answer

Aftertax cash flow = $67,000 - {[$67,000 - $89,500 × (1 - 0.20 - 0.32)] × 0.35} = $58,586

Phil's Dinor Purchased Some New Equipment Two Years Ago for $89,500.Today,it