Heald and Swenson Inc purchased a drill press for $850,000 one year and nine months ago. The asset has a six year life and has been depreciated according to the following accelerated schedule.
Year 1 2 3 4 5 6
%of cost 55% 20% 10% 5% 5% 5%
The press was just sold for $475000. The firm's marginal tax rate is 35%. Calculate Heald and Swenson's taxable profit and cash flow on the sale. Assume depreciation is spred evenly within each year.