A corporation sell a piece of equipment it own today for


A corporation sell a piece of equipment it own today for $31,000. This equipment has been fully depreciated, using MACRS rules and had an original cost of $265,000. The company's tax rate is 38%. What is the after-tax cash inflow to the firm from the disposal of this asset?

a) $234,000

b) $19,220

c) $11,780

d) $214,780

Solution Preview :

Prepared by a verified Expert
Business Management: A corporation sell a piece of equipment it own today for
Reference No:- TGS01655275

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)