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A Bakery Invests $30,000 in a Light Delivery Truck

Question 73

Multiple Choice

A bakery invests $30,000 in a light delivery truck.This was depreciated using the five-year MACRS schedule shown above.If the company sold it immediately after the end of year 2 for $22,000,what would be the after-tax cash flow from the sale of this asset,given a tax rate of 40%? A) $5,184 B) $8,544 C) $8,640 D) $16,656
A bakery invests $30,000 in a light delivery truck.This was depreciated using the five-year MACRS schedule shown above.If the company sold it immediately after the end of year 2 for $22,000,what would be the after-tax cash flow from the sale of this asset,given a tax rate of 40%?


A) $5,184
B) $8,544
C) $8,640
D) $16,656

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