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A Bakery Invests $40,000 in a Light Delivery Truck

Question 50

Multiple Choice

A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%? A) $11,520 B) $9480 C) $3792 D) $17,208 A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%?


A) $11,520
B) $9480
C) $3792
D) $17,208

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