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Question - Reversing Rapids Co. purchases an asset for $118,265. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense 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 of 30%. The asset is sold at the end of year 4 for $11,617, what is the cash flow from disposal?
Calculate gain or loss on disposal. Gain should be entered as a positive number. Loss should be entered as a negative number.
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