Gain/loss on asset sale, taxes (LO5): Pringle Plastics recently sold a forklift for $12,500. The firm, which pays taxes on income at the rate of 45%, had purchased the forklift for $50,000. The firm’s...

Gain/loss on asset sale, taxes (LO5): Pringle Plastics recently sold a forklift for $12,500. The firm, which pays taxes on income at the rate of 45%, had purchased the forklift for $50,000. The firm’s books show accumulated depreciation of $38,700.

Required:

What is the after-tax cash flow due to the sale of the forklift?