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Bing Services is now in the final year of a project. The equipment originally cost $20,000....

Bing Services is now in the final year of a project. The equipment originally cost $20,000. The existing UCC is $5,000. Bing can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment’s net after-tax salvage value for use in a capital budgeting analysis? Note that the recapture is fully taxable.

a.

$5,880
b.

$5,600
c.

$6,174
d.

$5,320
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