11 Jan

Rocky Top, Inc purchased some seven-year MACRS welding equipment

by jagguarpaw On: Finance - 0 Comment

Question: Rocky Top, Inc., purchased some seven-year MACRS w…

Rocky Top, Inc., purchased some seven-year MACRS welding equipment six years ago at a cost of $73,000. Today, the company is selling this equipment for $25,000. The tax rate is 33 percent. What is the after tax cash flow from this sale? The MACRS allowance percentages are as follows, commencing with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent

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