Western Inc.purchases a machine for $15,000.This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 20.00%;year 2 = 32.00%; year 3 = 19.20%;year 4 = 11.52%.Western has a tax rate of 33%.If the machine is sold at the end of four years for $4,000,what is the cash flow from disposal?
A) $3,535.36
B) $3,408.22
C) $2,592.00
D) $1,408.00
Correct Answer:
Verified
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