(SOLVED) In year 1 Expert Chemicals purchased a forklift truck for


Question Description:

$15

In year 1, Expert Chemicals purchased a forklift truck for $300 000, and at the end of year 3 sold it for $55530. At the time of sale $233070 in accumulated depreciation had been recorded. Note the accumulated depreciation is the same for accounting and tax purposes.
Required:
1. What was the forklift’s carrying amount at the time of sale?
2 Calculate the profit or loss on the sale.
3 Determine the after-tax cash flow from the sale of the forklift. The firm’s tax rate is 40 percent.

Answer

$15