Question
Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $70,000 when new and has
Blackjack Inc. wants to replace a 9-year-old machine with a new machine that is more efficient. The old machine cost $70,000 when new and has a current book value of $15,000. Blackjack can sell the machine to a foreign buyer for $14,000. Blackjack's tax rate is 35%. The tax effect of the sale of the old machine is?
A. $350.
B. $13,650.
C. None is correct.
D. $14,350.
E. $750.
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Governance And Finance Of Metropolitan Areas In Federal Systems
Authors: Enid Slack, Rupak Chattopadhyay
1st Edition
0199008973, 9780199008971
