Phil's Diner, a Sole Proprietorship Purchased Some New Equipment Two

Phil's Diner, a sole proprietorship purchased some new equipment two years ago for $32,600.Today, it is selling this equipment for $22,000.What is the aftertax cash flow from this sale if the tax rate is 35 percent? The applicable MACRS allowance percentages are as follows, commencing with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

A) $19,776.80
B) $18,846.67
C) $24,223.20
D) $20,408.20
E) $25,153.33