HOW TO SOLVE - Problem 11-03 Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $15 million, of which 85% has been depreciated. The used equipment can be sold today for $5.25 million, and its tax rate is 30%. What is the equipment's after-tax net salvage value? Write out your answer completely. For example, 2 million should be entered as 2,000,000.