Answer:
$153,566.80
Explanation:
Book value of old machine = Machinery Cost*(1 - Accumulated depreciation)
Book value of old machine = $337,600*(1 - 0.20 - 0.32)
Book value of old machine = $337,600*0.48
Book value of old machine = $162,048
Loss on sale = Sale value - Book value
Loss on sale = $149,000 - $162,048
Loss on sale = -$13,048
Tax saving due to loss (cash inflow) = $13,048 * 0.35
Tax saving due to loss (cash inflow) = $4,566.80
Total cash inflow = $4,566.8 + $149,000
Total cash inflow = $153,566.80
Therefore, the after-tax salvage value from this sale is $153,566.80.
