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2 years ago, you purchased an industrial pump for your chemical processing plant. The pump was purchased for $3,500. The pump was expected to depreciate
2 years ago, you purchased an industrial pump for your chemical processing plant. The pump was purchased for $3,500. The pump was expected to depreciate at a rate of 17%, using the declining balance method. Today, you sold the pump for $6,900. Given that 50% of capital gains are taxable, and that the corporate income tax rate is 44%, what are your after-tax proceeds from the sale of the pump? Assume no capital losses are available, and that the HYR does not apply and round your total to the nearest whole dollar
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