Reference no: EM132641127

The Manata Co purchased a truck costing $27,000 three years ago. It was estimated the truck's useful life was four years at the time of purchase. The company uses straight line depreciation and assumes salvage value (worth at end of useful life) is 0. The truck was sold yesterday for $10,000.

Question 1: If the Manata Company is subject to a marginal tax rate of 35%, determine the cash flow associated with the sale of the used truck.

1. The total amount of depreciation is [A] (write whole value - no decimal places).
2. The Book Value of the truck at the time of sale is [B] (write whole value - no decimals).
3. The tax owed from the sale of the truck is [C], include two decimals for "cents".
4. The realized amount to the company from the sale of the truck is [D], include two decimals for "cents".