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Equipment was purchased three years ago for $100,000. For tax accounting purposes, it is being depreciated straight line over a ten year life. For financial
Equipment was purchased three years ago for $100,000. For tax accounting purposes, it is being depreciated straight line over a ten year life. For financial accounting purposes, it has an estimated salvage value of $8,000. The equipment was sold today for $87,000. If the tax rate is 40%, what is the terminal value cash flow from this sale? Answer: 80,200
could you please explain how to solve this?
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