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A Five-Year MACRS Asset That Cost $50,000 with Zero Terminal

Question 66

Multiple Choice

A five-year MACRS asset that cost $50,000 with zero terminal value was sold at the end of its useful life for $20,000.The tax rate is 20%._____ is the net after-tax cash inflow resulting from the transaction.


A) $56,000
B) $66,000
C) $8,000
D) $16,000

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