Reversing Rapids Co. purchases an asset for $160,496. This asset qualifies as a five-year recovery asset under MACRS. Th
Posted: Wed Jul 06, 2022 6:28 pm
Reversing Rapids Co. purchases an asset for $160,496. This assetqualifies as a five-year recovery asset under MACRS. The five-yearexpense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%,19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of30%. The asset is sold at the end of year 4 for $11,867, what isthe cash flow from disposal? Calculate gain or loss on disposal.Gain should be entered as a positive number. Loss should be enteredas a negative number. Round the answer to two decimals.