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A company is planning to sell old equipment that was purchased 1 3 years ago for $ 1 , 6 0 0 , 0 0

A company is planning to sell old equipment that was purchased 13 years ago for $1,600,000. The market value of the equipment is $300,000. The equipment has depreciated to $500,000. What is the tax implication of the sale of this equipment? The companys marginal tax rate is 34%. Is it a tax shield or tax liability?

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