Bing Services is now in the final year of a project.The equipment originally cost $20,000.The existing UCC is $5,000.Bing can sell the used equipment today for $6,000,and its tax rate is 40%.What is the equipment's net after-tax salvage value for use in a capital budgeting analysis? Note that the recapture is fully taxable.
A)$5,320
B)$5,600
C)$5,880
D)$6,174

Question

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The Answer of Bing Services is now in the final year of a project.The equipment originally cost $20,000.The existing UCC is $5,000.Bing can sell the used equipment today for $6,000,and its tax rate is 40%.What is the equipment's net after-tax salvage value for use in a capital budgeting analysis? Note that the recapture is fully taxable.
A)$5,320
B)$5,600
C)$5,880
D)$6,174

Bing Services Is Now in the Final Year of a Project.The