Question: Jason Inc is considering a project which will require the purchase of $1.4 million in new equipment. Using MACRS schedule, the equipment will be depreciated

Jason Inc is considering a project which will require the purchase of $1.4 million in new equipment. Using MACRS schedule, the equipment will be depreciated to a zero book value over the 6-year life of the project. Jason expects to sell the equipment at the end of the project for $0.28 million. The tax rate is 34%. What is the amount of the after-tax salvage value of the equipment at the end of the project's life?

A.$95,200

B.$924,000

C.$184,800

D.$375,200

E.$464,800

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