Problem $10-7$ Calculating Salvage Value $[$LO$1]$

Consider an asset that costs $$685,000$ and is depreciated straight$-$line to zero over its

seven$-$year tax life. The asset is to be used in a five$-$year project; at the end of the

project, the asset can be sold for $$145,000.$ If the relevant tax rate is $25$ percent, what is

the aftertax cash flow from the sale of this asset? $($Do not round intermediate

calculations and round your answer to the nearest whole number, e$.$g$.,32.)$

Aftertax salvage value