Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Cost recovery Brock Florist Company bought a new delivery truck for $29000 It was classif...

Cost recovery Brock Florist Company bought a new delivery truck for $29000 It was classified as a light duty truck The company sold its delivery truck after three years of service If a five

Cost recovery. 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, was used for the depreciation? schedule, what is the? after-tax cash flow from the sale of the truck? (use a 30?% tax? rate) if

a. the sales price was ?$17,000??

b. the sales price was ?$9,000??

c. the sales price was ?$5,000??

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%

 

Apr 10 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions