If ABC Co. purchases a new delivery van, it will sell its old delivery van. The
cost of the old delivery van is $25,000 and with accumulated depreciation
of $20,000 (Straight-line depreciation; 5 year life, $0 salvage value). At the
end of year 4, ABC sells the delivery van for $4,500. If you assume a 22%
tax rate, what is the after-tax cash flow from the sale?
$3,510
$4,610
$8,400
$3,900
Question 9
1 pts
If ABC Co. purchases a new delivery van, it will sell its old delivery van. The
cost of the old delivery van is $25,000 and with accumulated depreciation
of $20,000 (Straight-line depreciation; 5 year life, $0 salvage value). At the
end of year 4, ABC sells the delivery van for $6,300. If you assume a 22%
tax rate, what is the after-tax cash flow from the sale?