Carter Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value?© BrainMass Inc. brainmass.com June 3, 2020, 11:56 pm ad1c9bdddf
Original cost $20 million
Accumulated depreciation 80% = 20X80%=$16 ...
The solution explains how to calculate the after tax net salvage value