Edward's Manufactured Homes purchased some machinery 2 years ago for $319,000. These assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $140,000 to a foreign firm for use in its production facility in South America. What is the aftertax salvage value from this sale if the tax rate is 35 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% |