Power Manufacturing has equipment that it purchased 6 years ago for $2,900,000. The equipment was used for a project thatwas intended to last for 8 years. However, due to low demand, the project is being shut down. The equipment was depreciatedusing the straight-line method and can be sold for $470,000 today. The company's tax rate is 21 percent. What is the aftertaxsalvage value of the equipment?Multiple Choice$513,350$383,300

given,purchase price 6 years ago = $2900,000life of asset = 8 yearssalvage value = $470,000tax = 21%

Answered: Power Manufacturing has equipment that…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 18E

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