FINANCIAL ACCOUNTING
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Transcribed Image Text:The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $299,000.
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $181,000 and its tax rate is 21%, what is the after-tax cash flow from selling it?
**Note:** Assume that the equipment is put into use in year 1.
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**a. What is the book value of the equipment?**
The book value of the equipment after the third year is $_____. (Round to the nearest dollar.)
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