If the lathe in the previous problem can be sold for $5,000 at the end of year

Question:

If the lathe in the previous problem can be sold for $5,000 at the end of year 3, what is the after-tax salvage value?

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...