Question: Frances bought a car for ( $ 44,500 ) as a business investment opportunity. She is allowed to depreciate over 10 years and take it

$Frances bought a car for \$ \\$ 44,500 \$ as a$

Frances bought a car for \$ \\$ 44,500 \$ as a business investment opportunity. She is allowed to depreciate over 10 years and take it as business tax deduction. At the end of the 6 th year she sells this car for \$ \\$ 22,000 \$. Compute the cumulative cash benefit after sale on this transaction. Assume that Frances can earn \5.25 after tax returns and is in \28 tax bracket. Tax rate on gain is \15. \\[ \\begin{array}{r} \\$ 7,739.25 \\\\ \\$ 7898.67 \\\\ \\$ 7064.25 \\\\ \\$ 6842.54 \\end{array} \\]

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