The ogi corporation a construction company purchased a used, Accounting Basics

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The ogi corporation a construction company purchased a used

Problem

The Ogi Corporation, a construction company, purchased a used pickup truck for $22,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $8000 a year. At the end of four years, Ogi sold the truck for $5000. The combined federal and state income tax rate for Ogi is 30%. Compute the after-tax rate of return for the Dyce truck.

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Accounting Basics: The ogi corporation a construction company purchased a used

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