Answer:
The after tax salvage value would be of $18,681.6
Step-by-step explanation:
In order to calculate the after tax salvage value we would have use and calculate the following formula:
After tax salvage value = selling price*(1-tax rate)+book value*tax rate
Book value = 8 year depreciation amount of 7 year MACR*purchase price
After tax salvage value = $24,000*(1-0.4)+$240,000*4.46/100*0.4
After tax salvage value = $18,681.6
The after tax salvage value would be of $18,681.6