Answer:
The after tax salvage value of the asset is $165.000.
Explanation:
If the asset has a depreciation period of 5 years it means that still there is a depreciation´s remanent of $ 1.280.000, if the asset it's sold at $1.530.000 at the end of the project, then the salvage value before taxes it's $250.000 consequently the after tax salvage value of the asset it's $ 165.000.
When company's asset it's for sale if there is yet a remanent value of depreciation it's the cost of sale of the transaction, if the depreciation it's zero then the sale it's a all gain to the company.
Please see details below:
Value of the Asset : $6.400.000
Anual Depreciation: $.1.280.000
Value of Sale: $1.530.000
Cost of Sale : $1.280.000
Revenue : $250.000
Tax Rate: - $85.000
Salvage value: $165.000
