Question: Problem 11-03 Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $14 million, of which 80%

Problem 11-03

Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $14 million, of which 80% has been depreciated. The used equipment can be sold today for $4.2 million, and its tax rate is 30%. What is the equipment's after-tax net salvage value? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

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