Flowers Inc. purchases an asset for $300,000 and will depreciate it down to zero using the...

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Flowers Inc. purchases an asset for $300,000 and will depreciate it down to zero using the straigth-line method. The life of the asset is 30 years. Flowers Inc. has a tax rate of 30%. If the asset is sold at the end of six years for $110,000, what is the cash flow from disposal (termination value of the asset)? Your Answer: Answer Flowers Inc. purchases an asset for $300,000 and will depreciate it down to zero using the straigth-line method. The life of the asset is 30 years. Flowers Inc. has a tax rate of 30%. If the asset is sold at the end of six years for $110,000, what is the cash flow from disposal (termination value of the asset)? Your Answer: Answer

Answer rating: 100% (QA)

To find the cash flow from disposal termination value of the asset we need to calculate the book val... View the full answer