Question

Find the disposal tax effect if your current market value is 50,000 and your ucc =...

Find the disposal tax effect if your current market value is 50,000 and your ucc = 25,510.63
*** not sure if you need any other information, this is for the disposal tax effect section of my cash flow statement, the anwser should be -9795.75 but I’m not sure how my professor came up with that number. If you could should your work(equations and what not) that would be really helpful!
MARR= 15%
40% effective tax rate
CCA= 30%
0 0
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Answer #1

Answer: -$9,795.75 (Cash outflow)

It is [current market value-UCC]*40%.
= (50000-25510.63)*40% = $ 9,795.75
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