A 125000 tractor-trailer is being depreciated by the sl


Question: A $125,000 tractor-trailer is being depreciated by the SL method over five years to a final BV of zero. Halfyear convention does not apply to this asset. After three years, the rig is sold for (a) $70,000 or (b) $20,000. If the effective income tax rate is 40%, what is the net cash inflow from the sale for situation (a) and situation (b)?

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Engineering Mathematics: A 125000 tractor-trailer is being depreciated by the sl
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