Southern Inc.purchases an asset for $150,000.This asset 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%.Southern has a tax rate of 35%.If the asset is sold at the end of four years for $40,000,what is the cash flow from disposal?

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The Answer of Southern Inc.purchases an asset for $150,000.This asset 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%.Southern has a tax rate of 35%.If the asset is sold at the end of four years for $40,000,what is the cash flow from disposal?