MACRS
A machine is purchased for $575,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%?
A) $42,608
B) $15,916
C) $32,392
D) $63,663

Question

MACRS
 A machine is purchased for $575,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%?
A) $42,608 
B) $15,916 
C) $32,392 
D) $63,663

Quizplus · Accepted Answer

D) 11ea84dc_f54b_1015_9a63_8580d2be3b89_TB1316_00_TB1316_00 11ea84dc_f54b_3726_9a63_9994a95582eb_TB1316_00_TB1316_00 11ea84dc_f54b_3727_9a63_19c6f031c24e_TB1316_00_TB1316_00

MACRS a Machine Is Purchased for $575,000 and Is Used