A Machine Is Purchased for $575,000 and Is Used Through

question 38

Multiple Choice

A machine is purchased for $575,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%?

• A)$42,608
• B)$15,916
• C)$32,392
• D)$63,663

---

Definitions:

Social Forces

Factors that influence societal change and shape social structures, such as economic pressures, political movements, and cultural trends.

Professional Socialization

The process by which individuals learn the behaviors, skills, and values necessary for successful integration into a professional setting.

Preprofessional Identity

A phase where individuals are developing their sense of self and professional goals, often associated with the period of education and training before entering a chosen profession.

Resocialization

The process by which individuals learn new norms and values to adapt to significantly different social roles or environments, such as in prisons or the military.