Martinez,Ltd. Purchases a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%. If the company sells the machine at the end of four (4) years for $4,000, what is the cash flow from disposal? Show your calculations.

1. $3,535.36

2. $3,408.22

3. $2,592.00

4. $1,408.00

Answer rating: 100% (QA)

Required solution Cost of asset 1500000 less 4 year Depreciation provided 1240800 203219211521... View the full answer