An asset with initial cost base of 6 million was bought 5 years ago.At the end of the current year (fifth year) the asset is sold by 1.1 million. The asset belongs to the 7 years MACRS property class. Knowing that the gain (loss) tax rate 40%,what is the net proceeds resulted from selling the asset?
the initial cost of the fixed asset has been written off: 6million
the amount of depreciation on the realized fixed asset is written off:
the asset is sold by 1.1 million