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4. A company purchased an equipment for S50000 five years ago. At that time, the system was estimated to have a service life of 5

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4. A company purchased an equipment for S50000 five years ago. At that time, the system was estimated to have a service life of 5 years and salvage value of S5000. The equipment was depreciated at a declining balance CCA rate of 30%. Now, you are considering selling the equipment for $10000. What is the disposal tax effect in both the cases (salvage values of $5000 and S10000) and the net/actual salvage value? Use the 50% rule for the new equipment Also assume the company's combined provincial and federal tax rate to be 40%. [10 Points

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