Question: You own some equipment that you purchased 4 years ago at a cost of $220,400. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $86,000. Which is the after tax salvage value of this equipment if your if your tax rate is 35 percent?
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MACRS 5-year property
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Year
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Rate
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1
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20.00%
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2
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32.00%
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3
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19.20%
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4
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11.52%
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5
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11.52%
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6
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5.76%
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