What is the cash flow from disposal

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Problem 1: Reversing Rapids Co. purchases an asset for $132,141. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $12,093, what is the cash flow from disposal?

Problem 2: Calculate gain or loss on disposal. Gain should be entered as a positive number. Loss should be entered as a negative number.

Reference no: EM133006275

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