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Consider an asset that costs $635,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to

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Answer #1

bookvalue of asset = cost - accumulated depreciation

= 635000 - (635000/8)*5

= 238125

tax on sale = (105000 - 238125) * 0.22

= 0 , since it is negative

hence aftertax salvage value = 105000

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