Explore BrainMass

Explore BrainMass

    Equipment's after-tax net salvage value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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 4, 2020, 12:22 am ad1c9bdddf

    Solution Preview

    The after tax salvage value is calculated as

    Cost of equipment 20,000,000
    Accumulated ...

    Solution Summary

    The solution explains how to calculate the equipment's after-tax net salvage value