Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 54

Given an asset with a net book value (NBV) of $25,000, what are the after-tax proceeds for a firm in the 34 percent tax bracket if this asset is sold for $35,000 cash What are the after-tax proceeds for this same firm if the asset is sold for $15,000 cash (Show calculations.)