Southwest Co

question 14

Essay

Southwest Co.purchases an asset for $60,000.This asset qualifies as a seven-year recovery asset under MACRS.Winston has a tax rate of 30%.The seven-year fixed depreciation percentages for years 1,2,3,4,5,and 6 are 14.29%,24.49%,17.49%,12.49%,8.93%,and 8.93%,respectively.If the asset is sold at the end of six years for $10,000,what is the cash flow from disposal?

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Definitions:

Marketing Role

Refers to the specific set of responsibilities or activities assigned for designing, promoting, and selling products or services.

Oligopoly

A market structure characterized by a small number of firms controlling a large share of the market, leading to limited competition.

Wireless Mobile Phone Market

Refers to the sector of the economy that is involved in the manufacturing, distribution, and sale of mobile phones and services without the use of wires or cables.

U.S. Subscribers

Individuals or entities in the United States that have signed up to receive services or products on a recurring basis.