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Equipment after-tax net salvage value-allen air lines

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Reference no: EM132657347

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $16.8 million, of which 85% has been depreciated. The used equipment can be sold today for $4.2 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.

Reference no: EM132657347

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