A company purchased a bulldozer for $250,000, 3 years ago. The bulldozer is depreciated using a straight

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A company purchased a bulldozer for $250,000, 3 years ago. The bulldozer is depreciated using a straight line

depreciation method to a useful life of 10 years with an assumed salvage value of $50,000. The company now

wants renew the bulldozer early and will sell the current bulldozer for $200,000. What would be the after tax net

cash flow from selling the old bulldozer? Assume that the marginal tax rate of this company is 21 %.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324312140

16th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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Posted Date: Feb 23, 2024 10:51 PM

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A company purchased a bulldozer for $250,000, 3 years ago. The bulldozer is depreciated using a straight

Question:

Expert Answer:

Calculating the AfterTax Net Cash Flow from Selling the Bulldozer Heres how to calcu... View the full answer

Intermediate Accounting

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