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The Galley Purchased Some 3-Year MACRS Property Two Years Ago

Question 56

Multiple Choice

The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800.The MACRS rates are 33.33 percent,44.44 percent,14.82 percent,and 7.41 percent.The firm no longer uses this property so is selling it today at a price of $13,500.What is the amount of the aftertax profit on the sale? Assume the firm applies bonus depreciation and has a tax rate of 21 percent.


A) $9,140.48
B) $10,665.00
C) $8,295.00
D) $7,187.78
E) $10,702.40

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