Question 27
Southern Inc. purchases an asset for $184,000. This asset qualifies as a 3-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 = 33.33%, year 2 = 44.45%, year 3 = 14.81%, and year 4 = 7.41%. Southern has a tax rate of 20%. If the asset is sold at the end of 3 years for $40,000, what is the cash flow from disposal?
$54,261
$43,409
$84,782
$67,826
$34,727