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An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS method as a 5-year property. At the end of

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An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS method as a 5-year property. At the end of four years, the management decided to sell the equipment for a modest price of $20,000. The company is in the 34% tax bracket. Compute the tax consequence on the sale of this equipment. $6,800 $926.40 $533.12 None of these

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