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Posted on Jul 30, 2024

A firm bought a machine for $ 1 0 0 , 0 0 0 . Its current book value is $ 4 7 , 0

A firm bought a machine for $

100, 000 .

Its current book value is $

47, 000 .

The firm's tax rate is

40 % .

If the firm sells the asset for $

60, 000,

what is the tax consequence? The firm has a

34 %

rate.

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