A machine has been depreciated on a straight-line basis for four years, assuming a six-year life and

Question:

A machine has been depreciated on a straight-line basis for four years, assuming a six-year life and a 10 percent salvage value. Last year’s depreciation adds up to $$80,000.$ If the machine is sold at $$100,000,$ how much more/less taxes will the firm have to pay this year compared to the case that the machine is not sold?

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