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Problem:

An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,040,000 and will be sold for $1,240,000 at the end of the project.

Required:

Question: If the tax rate is 30 percent, what is the aftertax salvage value of the asset?

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171681

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