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Please show all work You purchased a machine for$1.09million three years ago and have been applying​...

Please show all work

You purchased a machine for$1.09million three years ago and have been applying​ straight-line depreciation to zero for a​ seven-year life. Your tax rate is 25%.If you sell the machine today​ (after three years of​ depreciation) for $721,000​,

what is your incremental cash flow from selling the​ machine?

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Answer #1
1] Cost of the machine $       1,090,000
Annual depreciation = 1090000/7 = $          155,714
Accumulated depreciation = 155714*3 = $          467,143
Book value on date of sale [1090000-467143] $          622,857
2] Sale price of the machine today $          721,000
Gain on sale = 721000-622857 = $ 98,143
Tax on gain = 98143*25% = $ 24,536
3] Incremental cash flow on sale = 721000-24536 = $          696,464
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