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The Jones Company has just completed the third year of a​ five-year MACRS recovery period for...

The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000.

a. What is the book value of the​ equipment?

b. If Jones sells the equipment today for $185,000 and its tax rate is 25%​, what is the​ after-tax cash flow from selling​ it?

Note​: Assume that the equipment is put into use in year 1.

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