Crafter's Supply purchased some fixed assets 2 years ago at a cost of $38,700.It no longer needs these assets so it is going to sell them today for $25,000.The assets are classified as 5-year property for MACRS.What is the net cash flow from this sale if the firm's tax rate is 30 percent?
A)$13,122.20
B)$18,576.00
C)$20,843.68
D)$23,072.80
E)$25,211.09

Question

Crafter's Supply purchased some fixed assets 2 years ago at a cost of $38,700.It no longer needs these assets so it is going to sell them today for $25,000.The assets are classified as 5-year property for MACRS.What is the net cash flow from this sale if the firm's tax rate is 30 percent? 
A)$13,122.20 
B)$18,576.00 
C)$20,843.68 
D)$23,072.80 
E)$25,211.09

Quizplus · Accepted Answer

The Answer of Crafter's Supply purchased some fixed assets 2 years ago at a cost of $38,700.It no longer needs these assets so it is going to sell them today for $25,000.The assets are classified as 5-year property for MACRS.What is the net cash flow from this sale if the firm's tax rate is 30 percent? 
A)$13,122.20 
B)$18,576.00 
C)$20,843.68 
D)$23,072.80 
E)$25,211.09

Crafter's Supply Purchased Some Fixed Assets 2 Years Ago at a Cost