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Carla Vista Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2.5 million five years ago that produces pain-reliever medicine. The machine
Carla Vista Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2.5 million five years ago that produces pain-reliever medicine. The machine has been depreciated over the past five years, and the current book value is $852,000. The company decides to sell the machine now at its market price of $895,000. The marginal tax rate is 40 percent. What is the after-tax salvage value of this machine? A) B) C) D) $536,841 $877,800 $784,265 $689,412
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