Question

Please help me. I want to make sure I have them right. Thank you.

QUESTION 12 consider an asset that costs $431,200 and is depreciated straight line to zero over its 10-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $53,900. Required :If the relevant tax rate is 33 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) O $121,490.60 O $36,113.00 O $115,416.07 O $925,475.00 O $127,565.13

Answer 1

O12 Calenlatian fer Tan Catflaus am The Saleof esal Anual Oepreciation st Caleulala sset Cast fon dife in gaans Depraciation 431200 10 43 120 Ammual 11 Oaprecistion Sald afer 4 goar ssat at the Sales Book Value of lme af he ssel Cast clessepreciation af yar 43,120x4) $431 20a 172 480 Book Value at h me of Sale 2.58 720 41

lass Nous, Calculotiom af Gru an aassat am Salo రండ prics adess Boak Value at the time of Sole 258 7 20) -(4 204,820 సు Sale af Assat am Jass af fon renafit LOmflaus ale ssat of So lar Benafist Jass am Sale x tan Rato af Asset 204 820 & 67. 590.60 3.31 fan benafit Cash Imflares) After tare Cah faus framm Sala af esat ale Valus ssat 53.900 Benafit af las Can Cash flaw b) 67, S9o 60 $121,990-60 o 121,490. 60 Carract is