You purchased a machine for $1.19 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 40%. If you sell the machine today (after three years of depreciation) for $724,000, what is your incremental cash flow from selling the machine?

The incremental cash flow is $706,400

Explanation:

Calculation of Depreciation for 3 years

Depreciation = Cost / Useful years

= $1,190,000/7

= $170,000

Depreciation up to 3 years = $170,000 * 3

= $510,000

Calculation of Book value

Book value = Cost - Deprciation up to 3 years

= $1,190,000-$510,000

= $680,000

Profit on sale of assets = Sales value - Book value

= $724,000 - $680,000

= $44,000

Incremental Cash flow = Sales value - (Profit on sales of asset * Tax rate)

= $724,000 - $44,000 * 40%

= $724,000 - $17,600

= $706,400

Therefore, the incremental cash flow is $706,400

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.