Problem:
Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets are classified as 5-year property for MACRS. The MACRS table values are .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively.
Required:
Question: What is the net cash flow from the salvage value if the tax rate is 35 percent?
- $18,020
- $19,098
- $18,720
- $18,902
- $19,000
Note: Please provide full description.