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A company sold a piece of equipment during the current tax year for $78,600. The accounting records show that its cost basis, B , is
A company sold a piece of equipment during the current tax year for $78,600. The accounting records show that its cost basis, B, is $190,000 and the accumulated depreciation is $139,200. Assume that the effective income tax rate is 40%. The tax liability resulting from this sale is? Please indicate whether this answer is negative or positive.
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