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Kerry's Mobile Homes purchased some machinery 2 years ago for $49,000. The assets are classified as 5-year property for MACRS. The company is replacing this machinery today with newer machines that utilize the latest in technology. The old machines are being sold for $15,000 to a foreign firm for use in its production facility in Central America. What is the aftertax salvage value from this sale if the tax rate is 34 percent?
MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
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