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

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

Victor bought a car for \$ \\$ 44,500 \$ as a business investment opportunity. He is allowed to depreciate over 10 years and take it as business tax deduction. At the end of the 10 th year he sells this car for \$ \\$ 22,000 \$. Compute the cumulative cash benefit after sale on this transaction. Assume that Victor can earn \5 after tax retums and is in \28 tax bracket. Tax rate on gain for Victor is \15. \$ \\$ 15,672 \$ \$ \\$ 12,372 \$ \$ \\$ 12,172 \$ \$ \\$ 18,472 \$

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