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Assume a company purchases a three-year property class machine for $39,765 and sells the machine at the end of three years for $18,000 at the
Assume a company purchases a three-year property class machine for $39,765 and sells the machine at the end of three years for $18,000 at the end of three years. If the company is subject to a 37% tax rate on capital gains, what is the tax consequence (in $) of selling the machine in year 3? (note that selling a machine at a price greater than the book value is considered a capital gain)
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