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EZ Mart Purchased an Asset for $208,000 Three Years Ago

Question 78

Multiple Choice

EZ Mart purchased an asset for $208,000 three years ago and sold it today for $86,000.The asset is 7-year MACRS property.The MACRS table values are .1429,.2449,.1749,.1249,.0893,.0892,.0893,and .0446 for Years 1 through 8,respectively.What is the aftertax salvage value from this sale if the tax rate is 35 percent?


A) $84,264.56
B) $84,314.14
C) $87,735.44
D) $87,311.09
E) $87,685.86

Correct Answer:

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