Additional capital gains for company

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Reference no: EM136402

Q. The PbP Company acquired a Warm n' Cook heat treating furnace so that it can properly heat treat parts for its high performance axles. As furnace cost $620,000 and was purchased on June 12, 2007. Deliverance and assembly charges were $40,000 and also company placed this furnace into service on October 23, 2007. The company used this furnace until 10 June, 2012 as it was sold for $240,000. Nevertheless, PbP Company have pay $10,000 to disassemble and ship the furnace to the new owner. What is the net cash flow after tax as it will result from selling this furnace in the year 2012? Capital gains tax rate for the company is 18% in 2012 also this furnace is classified with a 10 year class life and is declined using straight line schedule while this is foreign equipment. Assume a large company with plenty of additional capital gains for company in this year. Express the nearest dollar ($) and do not comprise spaces, commas, $ signs or other non-numeric characters in your answer.

Reference no: EM136402

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