Problem

Given an asset with a net book value (NBV) of $25,000, what are the after-tax proceeds for...

Given an asset with a net book value (NBV) of $25,000, what are the after-tax proceeds for a firm in the 34% tax bracket if this asset is sold for $35,000 cash? What are the after-tax proceeds for this same firm if the asset is sold for $15,000 cash? (Show calculations.)

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