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Question: You own some equipment that you purchased 4 years ago at a cost of $220,400. The equipment is 5-year property for MACRS. You are considering selling the equipment today for $86,000. Which is the after tax salvage value of this equipment if your if your tax rate is 35 percent?
MACRS 5-year property
Year
Rate
1
20.00%
2
32.00%
3
19.20%
4
11.52%
5
6
5.76%
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