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1. Babaloo Nightclubs purchased a disco mirror that currently has a book value of $500. If Babaloo sells the disco mirror for $10,000 today, then

1. Babaloo Nightclubs purchased a disco mirror that currently has a book value of $500. If Babaloo sells the disco mirror for $10,000 today, then what is the amount of cash that it will net after taxes if the firm is subject to a 39 percent marginal tax rate?

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