An after-market auto parts company sells a machining robot that had been depreciated to zero for $16,000.
Question:
An after-market auto parts company sells a machining robot that had been depreciated to zero for $16,000. If the company’s effective tax rate is 36%, the sale will:
(a) Increase the company’s taxes by $16,000
(b) Increase the company’s taxes by $5760
(c) Reduce the company’s taxes by $16,000
(d) Reduce the company’s taxes by $5760
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