Question
In: Finance
Brock Florist Company bought a new delivery truck for $29,000. It was classified as a light-duty...
Brock Florist Company bought a new delivery truck for
$29,000.
It was classified as a light-duty truck. The company sold its delivery truck after three years of service. If a five-year life and MACRS,
LOADING...
,
was used for the depreciation schedule, what is the after-tax cash flow from the sale of the truck (use a
40%
taxrate) if
a. the sales price was
$16,000?
b. the sales price was
$10,000?
c. the sales price was
$1,000?
Year 3-Year 5-Year
7-Year 10-Year
1 33.33% 20.00%
14.29% 10.00%
2 44.45% 32.00%
24.49% 18.00%
3 14.81% 19.20%
17.49% 14.40%
4 7.41% 11.52%
12.49% 11.52%
5 11.52%
8.93% 9.22%
6 5.76%
8.93% 7.37%
7
8.93% 6.55%
8
4.45% 6.55%
9
6.55%
10
6.55%
11
3.28%
Solutions
Expert Solution
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
jeff jeffy answered 10 months agoRelated Solutions
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