Time Weiner Inc. is now at the end of the final year of a project. The firm originally bought some project equipment for $57,000, of which 49% has already been depreciated. The firm could sell the equipment today for $34,200, and its tax rate is 34%.
What is the after-tax salvage value of the equipment? If the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.