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A company is contemplating the replacement of its old printing machine with a new model. The details of this transaction are below. If the company

A company is contemplating the replacement of its old printing machine with a new model. The details of this transaction are below.

If the company sells the old machine at market value, what is the net after-tax outlay for the new printing machine?

Cost of the new machine = $45,000
Current book value of old machine = $8,000
Current market value of old machine = $9,000
Tax Rate = 25%
Answers:
a. $9,580
b. ($13,250)
c. ($36,250)

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