Ronnie's Custom Cars purchased some fixed assets two years ago for $100,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $52,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?
MACRS 5-year property |
Year |
Rate |
1 |
20.00% |
2 |
32.00% |
3 |
19.20% |
4 |
11.52% |
5 |
11.52% |
6 |
5.76% |