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A corporation is selling an existing asset for $ 7 7 2 1 1 . The asset, when purchased, cost $ 5 5 9 4

A corporation is selling an existing
asset for $77211. The asset, when
purchased, cost $55946, was being
depreciated under MACRS using a
five-year recovery period, and has
been depreciated for four full years
If the assumed tax rate is 20 percent
on ordinary income and capital
gains, the tax effect of this
transaction is:

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