Alpha car rental purchased 5 cars for a total of 100000


Alpha Car Rental purchased 5 cars for a total of $100,000 three years ago. Now it is replacing the cars with newer vehicles. The company has depreciated 92.59% of the old cars, and sold these cars for a total of $ 25,000. Assume a tax rate of 40%. What is the cash inflow from the sale of these vehicles?

a. $25,000

b. $15,000

c. $19,164

d. $16,500

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Financial Accounting: Alpha car rental purchased 5 cars for a total of 100000
Reference No:- TGS01599438

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