How is after-tax salvage value for equipment calculated?

The salvage value after-tax means the net proceeds received after deducting the tax from the total proceeds.

Salvage value after-tax = Salvage value before-tax - (Salvage value before-tax * tax rate)

Example:

The salvage value of the equipment is $15,000, and the tax rate is 30%, calculate the after-tax salvage value.

Salvage value after-tax = $15,000 - ($15,000 * 30%)

Salvage value after-tax = $15,000 - $4,500

Salvage value after-tax = $10,500