If the equipment is sold at the end of its fourth year for


Zippy Corporation just purchased computing equipment for $25,000. The equipment will be depreciated using a five-year MACRS depreciation schedule. If the equipment is sold at the end of its fourth year for $13,400, what are the after-tax proceeds from the sale, assuming the marginal tax rate is 35 percent.

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Finance Basics: If the equipment is sold at the end of its fourth year for
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