The wise co purchased a new truck two years ago for 56000


The Wise Co. purchased a new truck two years ago for $56,000. The company uses MACRS depreciation for accounting purposes. The truck is classified as 5-year property, which has depreciation allowances of 20%, 32%, and 19.20% for the first three years, respectively. The company is in the 30% marginal tax bracket. Today the company received an offer of $32,000 for the truck. What will be the net cash flow from the sale if the company decides to sell the truck today?

a) $24,615

b) $28,663

c) $26,108

d) $30,464

e) $32,710

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Financial Management: The wise co purchased a new truck two years ago for 56000
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